Precise Mortgages and Exact Mortgage Experts, which are also brand names of CCFS, will continue with their current intermediary-only strategies.
The bank confirmed it had no plans to distribute mortgages through Charter Savings Bank and Precise will remain the sole mortgage lender within the group.
The challenger bank expects to launch its first savings range by the end of March, after two-years of strategic preparation. The launch range, co-ordinated by director of savings Paul Whitlock, will include a one, two and five-year fixed rate bond.
Charter Court Group of companies said the aim is to benefit from a more diversified funding model and that this move will not change its current securitisation plans.
Alan Cleary, managing director of Precise Mortgages (pictured) said: “This is about creating a sustainable and creative source of business over the long-term.”
The new bank is covered by the Financial Services Compensation Scheme (FSCS), the UK’s deposit protection scheme, which guarantees eligible customers’ deposits up to a total of £85,000.
The online and telephone-based proposition, which removes the cost associated with a physical presence on the high street, is set to launch in early 2015 and will be a UK bank for UK savers.
CCFS has made a number of senior board appointments to support the launch of the Bank and the future growth of the company. Philip Jenks becomes CCFS’ Chair after a forty year career in retail banking.
Ian Ward, former chief executive officer of Leeds Building Society has been named vice-chair and will be responsible for overseeing the savings proposition.
Tim Brooke, formerly a partner of PWC who has held senior positions at several retail banks joins the Board with specific responsibility for overseeing the Bank’s risk functions. In addition, Ian Wilson joins as the Bank’s chief risk officer.
Cleary said: “This is good news for our intermediary partners and our borrowers as being part of a bank gives us access to further funding sources, which will help us to continue with our strategy of helping those borrowers underserved by high street lenders.”
Ian Lonergan, chief executive officer of CCFS added: “We see the development of a retail banking proposition as a logical extension for our business, enabling it to diversify into new markets and build a sustainable and competitive business model for the future. Being granted this licence by the PRA demonstrates the strength of our offering and the ambitious plans we have to champion savers and borrowers and help them realise their financial goals.”
