Scarborough Specialist Mortgages - Packager Partners Announced

Press release published on 19 September 2006 by Scarborough Building Society

Scarborough Building Society today announced which packager associations will be the first to work with its new non-prime lending brand, Scarborough Specialist Mortgages.

AMPD (The Alliance of Mortgage Packagers & Distributors) and Freehold will be the first to sell mortgages on behalf of the new non-confirming provider.

When SSM launches this October, packagers who are members of these two associations and a select number of Scarborough’s existing intermediary key accounts will be the first to distribute its new product range, which will include everything from prime to heavy adverse mortgages as well as specialist buy-to-let mortgages and adverse buy-to-let mortgages.

Group Relationship Manager Simon Evans explained why Scarborough had chosen this approach.

‘We have planned a phased launch in order to control the flow of our new products to market, and were keen to team up with specific packagers who have a great deal of experience and influence in this market, being responsible for introducing large volumes of this type of business.

‘We have spent time visiting and discussing our proposition with all of the Packager Associations, as well as some of the independent packagers and have initially chosen to launch with AMPD and Freehold. We believe both of these associations appreciate the close links we are looking to forge with packagers and our desire to have a long-term relationship with these associations. This includes our desire to offer exclusive products via both partners.

‘At the same time we very much appreciate levels of business received from our existing key accounts and are keen to ensure we make SSM available to their members.’

Scarborough’s key accounts include John Charcol, London & Country, Legal & General Mortgage Club, The Mortgage Times Group, Mortgage Intelligence and Personal Touch Financial Services. SSM will be available to Scarborough’s other key accounts, Premier Mortgage Service and Portfoleo, shortly after launch.

Simon continued ‘Once we have established our new offering in this way, we will make our specialist products available to a wider selection of intermediaries. In addition, SSM will be available to consumers in the New Year, via our branch and direct channels.

Eddie Smith, Director of Operations for AMPD, said “we have been impressed with Scarborough’s approach in terms of entering into these market areas. We have worked with them during the pre launch process and they have been keen to ensure product options, pricing, criteria and service are geared to the demands of the intermediary market. The Scarborough have a good track record of innovation and by launching their market entry via AMPD they are getting a very effective route to market.

“All members of AMPD are looking forward to working with Scarborough Specialist Mortgages both on this launch and in the years ahead”.

Paul Brett, spokesman for Freehold said “It is good to welcome a new lender in this market with a building society background; a sure sign that the non-conforming sector has come of age. Scarborough has involved us heavily from the start and been quick to ensure that the products and delivery reflect direct input from Freehold, among other specialists. Our members are looking forward to working with them over the long term.”

SSM comes under the umbrella of the Scarborough Group, which also encompasses asset trading subsidiary North Yorkshire Mortgages and mortgage administration arm SMS Mortgage Services, as well as the core building society business.

---