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Victoria targets 1.5bn in sub-prime expansion

Victoria Mortgages plans to triple its sales over the next year and challenge the likes of Mortgages PLC at the top end of the market.

The lender says the low cost of originating its mortgages gives it an advantage over rivals by enabling it to offer cheaper deals for borrowers.

It says this is due to its low staff base and the fact that it outsources all of its work through packagers. It hopes to transact 1.5bn of busin- ess over the next 12 months compared with 500m in the past year.

Victoria, which says its operating expenses are only 0.67 per cent of its origination costs compared with over 2 per cent for some sub-prime lenders, is extending its reach across the entire sub-prime sphere. It previously only targeted the heavy adverse end but is moving into buy to let.

Director Alex Forrester says: “We are the cheapest manufacturer of mortgages and we can pass on these savings to borrowers. There are a number of new lenders who have started this year and there are more to come so the only way to have scale is to be profitable. We want to get closer to the likes of Mortgages PLC.”

Brentchase Financial Services mortgage specialist Mike Fitzgerald says: “Vic- toria will frighten a few lenders but they had to get their prices down as some were too high.”

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