Dudley to withdraw from advised mortgage sales
Instead the society is ramping up its intermediary proposition ahead of the MMR at which time its mortgage range will be distributed entirely through brokers.
Jeremy Wood, chief executive, said: “We have decided not to write advised business because we don’t feel it is an avenue which is right for us. We currently generate very little direct business so developing our intermediary presence is the way forward for the Dudley.”
Wood said the society is being encouraged to spread its risk geographically. Over half (65%) of its mortgage business is based in the West Midlands which it believes poses some risk to the society so a national spread is the society’s new strategy.
It is currently in talks with six distributors to deliver its range to the intermediary market and will consider feedback from the distributors on any changes its range may need to make it more attractive to its brokers.
Niche areas such as expat mortgages, self-employed borrowers, first-time buyers with gifted deposits, applicants aged 60, self build and shared ownership are all circumstances the Dudley is happy to consider.
Wood said: “Some lending rules – like not lending to a non-UK resident for a buy-to-let because there is no credit profile – do not make sense. If the applicant can satisfy affordability and prove his identity we would want to lend to this applicant.”
The society does not plan to launch a Help to Buy range although Wood said he thought the scheme was a positive force in the market. He confirmed the Dudley will aim to lend around £50m a year.