Three firms are currently applying for regulatory approval to become mortgage lenders, Money Marketing can reveal.
Lenders wishing to offer savings products as well as mortgages will be dual–regulated by the Prudential Regulation Authority and the FCA, while those offering only mortgage finance are regulated solely by the FCA.
Earlier this week, a new near-prime lender, Magellan Homeloans, launched into the mortgage market offering loans to borrowers with adverse credit as long as they can demonstrate a clean credit history for the past 12 months.
All Types of Mortgages chairman Vic Jannels says: “We need more lenders offering more bespoke deals, what we call ‘complex prime’, where the borrower does not necessarily fit the big banks’ scoring systems.
“The regulators must understand there is a place for cases of this kind, as long as a lender can justify affordability.”