The national mortgage franchise operation and the non-conforming lender will each own half of the new company, which will be based in Derby.
Spring will be a stand-alone company, with Mortgages plc and Mortgageforce continuing to operate as separate businesses. Spring will act as an introducer to the lender and, using Mortgageforces’ panel of lenders, will deal with applications not fitting the Mortgages plc’s criteria. Spring will also sell non-conforming secured loans.
Julian Wells, head of marketing at Mortgages plc, said: “This is the latest stage in our strategy aimed at securing distribution channels. We have a number of further developments planned over the next few months.”
Commenting on the development Matthew Bright, managing director of Optoma, said: “At a time when so many mainstream lenders have been leaving the retail market I find it amusing that a sub-prime lender is about to enter it. By going direct to consumer the lender could alienate their brokers.”
