Correspondent lenders enter UK market

Professional Adviser
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A new type of mortgage provider has entered the UK market that is able to lend large sums of money w...

A new type of mortgage provider has entered the UK market that is able to lend large sums of money without having a balance sheet to match. It's called a correspondent lender and some onlookers suggest its impact on competition in the UK mortgage market will be substantial. Correspondence lenders' roles are relatively straightforward. Funders outsource virtually every piece of administrative and underwriting work to the correspondent lender, who completes the loan under pre-agreed criteria between the two parties. What the funder receives back, on completion, is the loan on its bala...

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