Sub-prime specialist SPML has announced it is to enter the mainstream market, in a bid to exploit niche areas through its underwriting expertise.
The lender launched a flexible prime mortgage at the end of last year and has revealed plans to grow its mainstream business and compete head to head with prime lenders. The decision also follows SPML’s successful move into second charge mortgages.
Stuart Aitken, director of credit, said: ‘Since the launch of our flexible prime mortgage, we have written substantial amounts of business. We are looking at how we can expand mainstream business to non-flexible prime products and beyond. We are identifying niches in the mainstream market that with our underwriting experience we can fulfil better than other mainstream players. This will add an extra string to our bow.’
GMAC was the first sub-prime lender to move into the mainstream market. Gina Collman, spokesperson for GMAC, said if other sub-prime lenders make similar moves, borrowers will undoubtedly benefit.
‘There seems to be a definite move by lenders to mix products across all areas ‘ meaning better choice for consumers,’ she said.