Halifax is set to enter the sub-prime market this year through specialist lending arm Birmingham Mid-shires in a move it claims will “shake up” the mortgage market.
Midshires head of lending Michael Bolton says it will launch into the adv-erse-credit sector in the autumn with a range of products which will “redefine the pricing structure of the market”.
The move follows in the footsteps of Britannia Buil-ding Society, which rec-ently bought sub-prime lender Platform Home Loans in a £55m deal.
The Halifax brand will appear prominently on Midshires' marketing literature, signaling a further shift in major lenders' attitude towards the sub-prime sector.
Traditionally, mainstream providers have been keen to distance themselves from adverse-credit lending amid fears over unscrupulous lending practices.
A Halifax spokesman says: “As BM is the specialist lending arm of Halifax, it is a natural progression for it to offer good value and go out and shake up the market.”