You are here: Home - News -

More take-overs rumoured in the sub-prime market

  • 04/12/2001
  • 0
The futures of Kensington, Mortgages plc and SPML are in the spotlight

Speculation is growing that Kensington Mortgage Company will be the next sub-prime lender heading for a buy-out, due to rapid share price increases since the lender’s flotation.

Kensington’s shares have seen a 20% rise, but at the time of going to press, market analysts were saying the shares could be heading for a fall and the only reason they had increased was due to press speculation over a take-over and a recent general meeting where the company was granted permission by shareholders to purchase its own shares.

The lender denied the possibility of an imminent buy-out. Alistair Pate, marketing and strategy manager at Kensington, said: ‘We are not expecting anything to happen. There is a lot of speculation about a possible take-over. But there really is nothing to report, it is based on nothing but rumours.’

The speculation coincides with the confirmation that another sub-prime lender, Mortgages plc, is to sell to a blue-chip company.

Paul Howard, sales and marketing manager at Mortgages plc, said the firm expected to make an announcement in the next few weeks.

‘Discussions have gone extremely positively, although matters have been delayed by the recent worldwide events. However, we are confident that the buy-out will be positive news for customers.

‘All the potential buyers are blue-chip companies and depending on the buyer, post-transaction we believe we will be able to offer even better products and services which will not just be good news for us, but for the industry as a whole,’ he said.

Howard said he expected the remaining sub-prime lenders to follow their leads. ‘If you look at the list of our peers, almost all have been either acquired in total, or have significant share holdings. Lehman Brothers is rumoured to have a 70% share in SPML and it is thought it is looking to sell its investment,’ he said.

SPML refused to disclose any information attached to the rumours. Bill Cherry, managing director at SPML, said: ‘It is not company policy to comment on any rumours that are current in the market- place and we cannot contravene this policy in the present circumstances.’


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.


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.


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.


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.
  • Richard Beardshaw, head of sales, mortgage intermediaries at HSBC UK for Intermediaries welcoming the brokers to to…
  • We are in Allianz Park today for the first in the series of HSBC UK for Intermediaries Breakfast Seminars
  • At this year’s Later Life Lending Event Richard Rowntree from Bank of Ireland for Intermediaries will be presenting…
Read previous post:
New boss required by Mortgage Brain

Mortgage Brain is advertising for a new chief executive and IT director to help take the trading pla...