The decision by Charter Court Financial Services Group to list the business on the London Stock Exchange follows lending growth of 92% across buy to let, specialist residential, second charge and bridging since December 2014.
Old Mutual Global Investors has already provided a letter of intent to buy £100m of the offering on behalf of funds that it manages.
Charter Court has a £4.4bn net mortgage loan book as at 30 June 2017 after pursuing organic growth through its network of more than 17,000 intermediaries. It would list for over £500m.
Alan Cleary, managing director of Precise Mortgages, said the specialist market is becoming increasingly sophisticated in the light of regulatory change.
Changes to buy to let underwriting and the treatment of portfolio landlords have altered the buy-to-let landscape, while volumes of second charge business have grown sharply.
“We see an exciting future ahead for Charter Court as a specialist lender, purpose-built by the management team from the ground up for growth in our specialist mortgage markets as they continue to professionalise and increase in complexity,” he said.
“We are well positioned to take advantage of this trend. Since our formation in 2008, the hard work in building this bank and its scalable growth platform has been achieved and the volume of our business already is outstripping some of our listed competitors.”
As well as Precise, Charter Court operates online retail savings bank Charter Savings Bank and Exact Mortgage Experts, which provides mortgage administration, collections and other services.
The Group aims to maintain net loan growth of at least 20% a year in the medium term. It intends to pay dividends of at least 15% of the profit for the year, and increase this over time.
Charter Court was forced to abandon a planned sale early last year over Brexit uncertainty.