Accord Mortgages managing director Linda Will says the increasing number of lenders securitising business is stifling innovation in the market.She says that more lenders are designing products to suit a future portfolio sale rather than for the benefit of the consumer and the market. Her comments come after US giant Wachovia revealed last month that it is looking at moving into UK lending. Alliance & Leicester’s push into the non-conforming market is based on selling loans to Lehman Brothers on completion while BM Solutions says it is considering securitising a small proportion of the mortgages it sells in future. Will says: “If the model is to get rid of business, then innovation will become lost. You are originating products to sell on and that is a huge risk for the market. “We recently recruited a product development manager from a lender which securitises as they wanted to work for a balance-sheet lender.” Hamptons International Mortgages managing director Kevin Duffy says: “Any securitising lender has to design products for the needs of the buyer and if those requirements are straitjacketed and have strict pricing and definitions, then it will suppress innovation.” Will says she is also concerned that non-regulated mortgages that are retained by a lender after an introductory period do not have to be treated as regulated which she claims is confusing brokers and customers because of the different disclosure requirements. Accord will now treat all retained business as regulated.