Burgess says he’s responding to a call to arms from the Archbishop of Canterbury, Justin Welby, for those within the financial services sector to take a more ethical approach to loans and protect the most vulnerable in society.
The money will be made available online via British Loans Limited – a wholly-owned subsidiary of his existing income protection firm, British Money Limited.
Borrowers will be offered an APR under 5% and the cost of the additional Defaqto-rated five star cover will be absorbed by Burgess out of his profit margins. Each secured loan is expected to be repaid over a 10 year period.
Burgess said: “I’m currently sorting out the access to funding issues and developing the website, but when complete, this will be a huge leap forward in addressing calls for greater financial inclusion in an ethical manner, whilst giving borrowers peace of mind their loan is automatically covered. I urge other lenders to follow suit.”
Burgess said that British Loans would provide simultaneous secured loans for those first time buyers who can’t necessarily afford a deposit to get on the property ladder.
He added: “There’s a whole generation having to live in rental accommodation as they can’t get on the housing ladder.”
Although a small lending pot to begin with Mortgage Introducer understands that Burgess is in advanced talks with a number of venture capitalist partners.