Charles Haresnape, managing director of residential mortgages at the challenger bank, said: “The second charge market is going to be huge in 2014. There is an abundance of creditworthy customers who either cannot get a further advance from their mortgage lender because that lender is no longer in the market or don’t want to leave their existing mortgage product because they have such a good deal.”
Haresnape described Aldermore as another “white knight” of the banking industry as it continued its efforts to offer a complete range of “innovative” products to the intermediary market.
The bank’s aim is to move secured loans from the fringes of financial services and into the mainstream market.
“Regulation will change the shape of the second charge market from 2014,” Haresnape said. “We have the advantage of coming into the market with a fresh proposition designed to fit within a regulated environment rather than having to adapt an old model to a new way of thinking.”
Aldermore is building a bespoke system which will manage both the bridging and secured loan products instead of adapting its existing systems and will hire a new team to deal with the underwriting and processing.
Matt Tristram, co-founder and director of Loans Warehouse, said: “The secured loan market will enter 2014 as competitive as it's ever been. With FCA regulation pending we believe more and more lenders will enter the space as they look for alternative ways to lend money. I cannot remember being more optimistic about a year than I am about 2014.”
While the bridging range will offer both commercial and residential loans, Haresnape said the second charge range will start off in the residential market.