Residential lender GMAC RFC has bought High Street Home Loans (HSHL) for an undisclosed amount, having previously held a minority share in the company.
GMAC RFC said HSHL would continue as a single brand, acting as division of the company. GMAC RFC is the UK’s 15th largest lender with plans to grow its lending by 20% this year to £4bn.
Although GMAC RFC operates across the UK residential market with one brand, Stephen Knight, executive chairman for GMAC RFC said the lender would look to further its business through more partnerships. Knight said: ‘Many of the top mortgage lenders in the UK have several different brands each with its own proposition, that are jostling against each other at the same time, and in the same marketplace. HSHL will become one of our brands.’
HSHL is set to launch a new product range following the acquisition. Unlike GMAC RFC it will not be menu-based, but offer products through a boxed criteria approach, although various options will be available. The lender will continue to offer products for non-conforming, self-certification and buy-to-let clients. Gary Forrest, director of the HSHL division and former head of HSHL, said: ‘We are delighted to be able to continue our strategy of developing our own product range in partnership with our customers while having the backing of one of the world’s largest financial institutions.’
A spokeswoman for GMAC RFC confirmed it would continue to look at further opportunities to extend its proposition in the UK lending market.
l See interview with Stephen Knight (p20) for further insight into GMAC RFC’s business and plans for the coming months.