Aldermore has appointed Colin Snowdon, former chief executive of Merrill Lynch’s defunct lender Wave, to explore the potential for launching a UK residential mortgage lender focused on the intermediary market.
Snowdon was also respon-sible for the launch of The Mortgage Business for Bank of Scotland and Verso for Britannia Building Society. He is joined at Aldermore by former Wave director of product development and credit Richard Spinks. Wave stopped lending in 2008 along with fellow
Merrill Lynch lending subsidiary Mortgages plc.
Aldermore offers commercial mortgages and savings accounts.
Aldermore chief executive Phillip Monk says: “Strategically, the UK residential mortgage market represents an important opportunity for
Aldermore. Colin and Richard not only have a wealth of knowledge from working in the intermediary sector but also have a proven track-record and many years experience of running successful mortgage lending businesses.”
John Charcol senior technical manager Ray Boulger says: “I have no doubt if the decision is made to go into the residential market, it would be either an intermediary-only lender or a lender where the vast majority of business is done through intermediaries.”
First Action Finance head of communications Jonathan Cornell says the appointment is a positive sign for brokers. He adds it could lead the way to more lenders following suit but it would not happen imminently.
He says: “I think it will be a slow and steady process. But there are some smaller banks out there that have been successful. They have got healthy levels of deposits and they are looking to build up their mortgage lending and obviously the cheapest way of doing that is through intermediaries.”