You are here: Home - News -

Britannia intermediary subsidiaries to merge in 2003

by:
  • 16/07/2002
  • 0
Britannia Building Society has announced its two intermediary-facing subsidiaries will merge in the ...

Britannia Building Society has announced its two intermediary-facing subsidiaries will merge in the new year.

Verso, the specialist lending arm of the society, and Platform Home Loans, the sub-prime lender acquired in February 2001, will come together in January 2003 under an as yet unnamed banner. It is hoped the integration will be completed by April.

The reason behind the merger is to close the product gaps between the two subsidiaries, such as the light-adverse market, where previously business was being lost.

David Tweedy, the current managing director of Platform, will run the new business.

He said: ‘The product gap between us is something that either one could fill. The only real difference is in prime, full-status products, but this is only a small part of the business we will be doing.’

The decision is not expected to damage either lender in the consolidation period as both have already gone beyond their predicted year-end targets.

But Gerald Gregory, managing director of Britannia’s non-member businesses, said both will continue to offer new products until the end of the year.

He said: ‘This is about providing clarity for intermediaries about who they should approach at Britannia. We will have a cascade underwriting service, where the aim will be to place the borrower within the group rather than returning the application to the broker if it does not fit the application. Few, if any, will be able to replicate this one-stop-shop offering.’

Steve Sandiford, head of product strategy at Birmingham Midshires Solutions, said: ‘We have shown the one-stop shop can work, and it is good to see others recognising this. It was not a surprise to see them doing this, as it makes a lot of sense to have the business under one roof, where underwriters can work together.’

Platform and Verso currently have a run rate of about £600m, and the new combined business is expected to have a rate of around £1.7bn.


Tags

There are 0 Comment(s)

You may also be interested in

Business Skills

In this section, we offer short ‘how to’ guides on harder to crack areas of business. From social media, to regulation or niche product areas, we cover it all.

Profiles

Our journalists interview key industry entrepreneurs, strategists and commentators for day-to-day market insight and a strategic view of where the industry is heading. We offer lessons for success and explore the opportunities for your business

Success in Practice

Here, we share case studies fleshing out best practice to help you decide what could work for your business. Take a look at how others approached complex tasks like launching a new mortgage lender, advising on a new product area or deciding to specialise in another. Learn from others mistakes and triumphs.

Marketwatch

Each week, we ask top mortgage and property commentators with a unique perspective to examine a key news headline, market move or regulatory or political issue.

Poll

Vote in our weekly poll here. It’s your chance to tell us what you think and be heard on the top news stories of the week. Review our archive to find out what your industry really thinks and all our coverage of the results.

Top Comments

Be part of the conversation on Mortgage Solutions. We want to hear from you. We have a tool called Disqus to tell us which stories get the most comments each week. Every Friday, the team picks the most thoughtful or opinionated contributions from our readers to enjoy again. Don’t forget to share your favourite stories from the site on social media to keep the conversation going.
Read previous post:
Middle market landlords facing defaults on buy-to-let payments

Increase in second calls for payment suggests cashflow problems for property investors

Close