Preferred Mortgages is to launch a correspondent lending service that will give selected packagers and large intermediaries the power to create bespoke mortgage plans to meet the needs of individual clients.
The concept will allow intermediaries to have an element of control in the product design process.
Simon Biddle, marketing communications manager at Preferred Mortgages, said: ‘We have spoken to a small number of high profile packagers, who we will call ‘Preferred Partners,’ and we are close to signing our first deal. The implementation timetable is unclear, but we are talking a matter of weeks.’
The Preferred Partners will be supplied with software that allows them to manipulate the product parameters, within a set range to produce their own bespoke mortgages.
All deals will be underwritten through Preferred Mortgages. According to Biddle, this would allow the creation of products that do not exist on the market.
He said: ‘Our underwriting parameters sit within the software model so anything outlandish would not be allowed and the model will have all the necessary restrictions ‘ effectively self-policing the deals. But it will give flexibility to the industry, especially within markets such as right- to-buy which are highly competitive at the moment.’
Although the first contract is with an, as yet unnamed, packager, the scheme will also be offered to larger mortgage brokers, and possibly some mortgage clubs and networks.