Snowdon, who was responsible for setting up specialist lenders including The Mortgage
Business for Bank of Scotland, and his former colleague Richard Spinks will look at prospective business in the residential market.
Aldermore, which was formed in May 2009 following the merger of Ruffler Bank and specialist lender Base Commercial Mortgages, offers commercial mortgages and asset finance. The appointments represent its first attempt to enter the mainstream mortgage market.
Snowdon said Aldermore was well-placed to develop a residential lending proposition as it was retail funded and had experience in the commercial market.
He added: “There is still a lot to be decided before any further announcements. We want to lend in the prime area and add residential lending to the business rather than set up a subsidiary.
However, we still have to determine whether we should compete with mainstream lenders or lend in a niche area.”
Brian Murphy, head of lending at Mortgage Advice Bureau (MAB), welcomed the announcement, saying that a new entrant would add competition to the market.
He said: “The market is desperate for competition and this move could force existing lenders to raise their game. I would imagine that it will not challenge the top lenders, but it will bring variety and choice to the market.
Aldermore has many relationships built up already and advisers will gravitate towards
them.”
Fahim Antoniades, group director at Mortgage Centre IFA, said it was very encouraging that a lender was poised to enter the market.
He added: “The litmus test of recovery is when a firm decides to take calculated risk like this. The fact that they think this is possible is great news for the market.”
