An industry source claimed that Barclays had been looking towards the non-conforming market for some time and that the link with GE would allow it to cherry-pick its expertise and experience in the sector.
The source said: “The move doesn’t really surprise me. Woolwich branches have received criticism for advising customers on secured loans when they didn’t meet the first loan criteria.
“Maybe the link with GE is an initial move to fill this void in its business. It seems this could be the first step by Barclays/Woolwich into the non-conforming sector. It’s a huge outfit and could make a real splash.”
A spokesperson at GE Consumer Finance Home Lending said: “We can confirm that GE Home Lending (GEHL) and Barclays Bank (including the Woolwich) are piloting an initiative whereby customers who do not match Barclays’ approval criteria for mortgages will be referred to GEHL to explore alternative financial opportunities.”
“This is a limited test involving a small number of Barclays’ mortgage advisers in London and the North West. Such referrals will only occur where the clear and express consent of the customer has been given.
“We consider this initiative to be wholly consistent with the desire of the government and consumers for financial services providers to take a more inclusive approach to customers. A decision whether to extend the pilot programme will be taken in due course,” the spokesperson added.
A spokesperson at Barclays would not confirm the extent of its potential move into the non-conforming market but said: “This pilot is about giving customers the chance to get back into mainstream banking. We are joining up with GE because we recognise it is one of the UK’s leading providers of specialist mortgages and loans.”
