As part of a plan to broaden its product range, and increase market share through intermediaries, London Scottish Bank has bought sub-prime commercial lender Prime Finance
Michael Rashman, director at Prime Finance, said: ‘The main reason the bank bought us was to expand its commercial mortgage operation via intermediaries, while we will be offering a more competitive product via the bank. The whole commercial product range is set to change, as well as our systems. It is a major expansion for us.’ The new range of commercial products, aimed at the small to medium sized business, is due to be released in a month.
The deal will also see the expansion of the residential side of Prime Finance’s business. Rashman said: ‘We are moving into residential mortgages for those who do not fit sub prime, unusual properties, right to buy, etc. We will be picking up what sub prime lenders do not lend on.’
Prime Finance will change its name to London Scottish Finance but will continue to trade as Prime Finance.