Building on its recently reported 46% increase in profits at the half year, it has announced the venture, which will be an equity partnership between Kensington and an experienced management team. It hopes the new lender will generate significant, incremental first and second charge mortgage business by broadening its access to the high growth UK non-conforming market and maximising the value from its current expertise in this area.

Simon Kingdon, finance director at Kensington, will be moving to MPL as Finance Director and will be resigning from the Kensington Board on 1 October 2004 to take up his new role.

John Maltby, chief executive of Kensington, said: “While we are sorry that Simon will be leaving Kensington, we are delighted he is joining the Board of MPL and that our partnership will benefit from his extensive experience. Simon will continue in his current role with Kensington until 1 October 2004 and the recruitment of a new finance director is underway.”