View more on these topics

Britannia pays out £55m for PHL

Britannia, the Uk&#39s secondbiggest building society, has become the first mutual to buy a sub-prime lender with the £55m acquisition of Platform Home Loans.

The deal will add £550m to Britannia&#39s existing mortgage book of around £15bn and will allow the society to compete in the prime, adverse-credit and intermediary market.

Britannia bought Platform from Cabot Square Capital, a London-based private equity investor with around $300m (£214.3m) under management.

The deal comes as increasing numbers of mainstream lenders look to increase their core profit margins away from the increasingly cut-throat competition in the traditional lending market.

Platform has a 10 per cent share of the non-conforming market and is one of the top three lenders in the sector behind Kensington and igroup.

Its senior management team will remain with the company and will continue to act as a separate company focusing on distribution through intermediaries.

Britannia only markets its products through its branch network, over the internet and through its telesales operation although it also operates Verso as its mainstream intermediary arm.

Britannia group finance director Neville Richardson says: “Platform is a well-run business with sound knowledge and expertise of the non-conforming market. It has seen excellent growth over the last two years and, with the capital support Britannia brings, we expect this success to continue.”

Platform managing director David Tweedy says: “Non-conforming lending is proving to be one of the fastest-growing sectors of the UK mortgage market and the relationship with Britannia will allow us to develop our products further.”


Product Matters

I have always been a fan of UK smaller companies. The area is under-researched and, until two years ago, deeply unfashionable. What I really like are new funds run by top managers. Enter Ashton Bradbury and Old Mutual who have just launched a UK select smaller companies fund. Ashton is a hugely experienced small-cap manager, […]

Jupiter moves greenwards with new trust

Snowden says: “The participating convertible shares available on offer, at one for every five ordinary shares, will be attractive. Other strong points include the low savings minimum of £30 a month and the facility for investment via an ISA. There is also fund manager Simon Baker’s track record of environmentally friendly investment.”Stevens points to the […]

Towry is signing up with Cofunds

Towry Law has thrown its weight behind IFA-only fund supermarkets, saying it is to sign up to Cofunds next week. The company said it would not join other nationals in signing up to Fidelity&#39s Funds-Network as it felt its direct platform undermined the IFA proposition. Towry&#39s deal with Cofunds is expected to be completed next […]

The with-profits war

The Consumers&#39 Association wide-ranging and trenchant report into the with-profits business, Profits at the Consumer&#39s Expense, has provoked a mixed response across the industry. From providers which do not offer with-profits policies, the report is welcomed. Skandia brand manager Peter Jordan says: “We welcome the report, which recognises the limitations in this kind of investment […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment