It is thought that this is the first time that this has been done in the UK, and a number of ‘preferred partners’ are being selected to join this distribution channel. The first to be announced is Solent Mortgages.
Paul Robinson, managing director of Solent Mortgage Services, said: "The idea of correspondent lending is a real step forward for the industry. It allows the correspondent to be in control of the products. This gives real edge in providing products to meet changes in the market.
"The correspondent can design products that they can sell to their customers based on local or national market experience and ongoing consumer demand. The fact that Preferred offers full underwriting and all necessary ancilliary support to each select intermediary is fantastic."
Preferred’s copywriting pricing model allows the correspondent to create a bespoke mortgage for their clients, which is then underwritten by Preferred.
Dennis Pitocco, chief executive of Preferred, said: "While certain mortgage lenders have emphasised ‘branding’ as the key to correspondent lending, we have focused our efforts on providing intermediaries with ultimate control over the mortgage product. Ths proven strategy emanates from the depth of successful and dominant US industry experience resident with Preferred."
