Preferred Mortgages has launched a correspondent lending arm within the non-conforming mortgage sector in the UK.
Several large brokers and packagers designated as ‘preferred partners’ are being selected to work with Preferred. The first, Solent Mortgage Services, signed up recently.
Paul Robinson, managing director of Solent, said: ‘This is a real step forward for the industry. It allows the correspondent lender to be in control of the products. This gives a real edge in providing products to meet market changes.’
Simon Biddle, spokesperson at Preferred Mortgages, believes the flexibility of the service is one of its main assets.
He said: ‘We supply the lender with software which enables it to design its own product with individual key features, making it very flexible. The packager remains in control of the products whereas with some UK models the broker has limited access.’
Lenders can design their own product adapting it with chosen features ‘ individual product details, LTVs and margins.
Dennis Pitocco, chief executive at Preferred, said: ‘While certain mortgage lenders have emphasised ‘branding’ as the key, we have focused our efforts on providing ultimate control over the mortgage product. This strategy emanates from successful US industry experience.’