Mortgage network JLM Mortgage Services is the first network to add new specialist lender OakNorth to its panel.
OakNorth entered the mortgage market last week (May 8) to appeal to the "niche" of asset-rich individuals who cannot pass standard affordability assessments with high street or specialist lenders due to irregular incomes.
The products are aimed at high-net worth individuals, small to medium business owners and clients with atypical income streams and OakNorth stated it would take a "holistic" case by case view of all applications.
The new lender is currently offering a residential lifetime tracker mortgage available to borrowers seeking to borrow more than £500,000 and up to 75 per cent loan to value, although it stated it would offer 85 per cent LTV and loans for a minimum of £250,000 in exceptional circumstances.
The product follows the BoE base rate and is available either with or without early repayment charges.
JLM hopes the addition of OakNorth to its lender panel will help member firms who experience problems with the private banks when it comes to such borrowers.
Sebastian Murphy, head of mortgage finance at JLM Mortgage Services, said: "We are pleased to see another challenger bank entering the fray and providing our adviser member firms with alternatives to the likes of Coutts and Investec.
"We are the first network to add this exciting new lender to panel and it gives our appointed representatives even greater options for their high-net worth clients."
Kevin Appleton, associate director of mortgages at OakNorth, said OakNorth’s presence on the JLM panel would help the firm achieve its aim of capturing 5-10 per cent of the under-served residential mortgage market by the end of this year.
He added: "Lenders are typically unwilling to offer bespoke terms to their mortgage products and, as a result, more than one in ten business owners in the UK are unable to access the finance they need to purchase their first home.
"By leveraging our experience in creating tailored loans for businesses, we can plug this gap and provide our growing portfolio of property investors and developers with mortgage solutions that are attractive, quick, convenient and easy to use."
Commenting on the announcement, Daniel White, of White Financial Services, said: "I’m sure JLM Mortgage Services are privileged to have OakNorth’s offering but it remains to be seen whether this will actually benefit their proposition.
"The product is currently a lifetime tracker which will benefit either those with a low risk attitude or in a market where the base rate will remain low.
"In addition, the product is specifically for borrowing over £500,000 but there are some very competitive products available for loans over this size with mainstream lenders at very competitive fixed and tracker rates."
However, Mr White added that one of the unique selling points of OakNorth’s proposition was that it offered no early repayment charge.
He added: "It is also advertised to be a tailor-made product around the client and therefore, if priced attractively, could well become a successful proposition to its market. The key for JLM will be if NorthOak can back up its tailor made proposition with pricing and service to their clients."
David Hollingworth, director at L&C Mortgages, said it was always good to see new and innovative brands entering the mortgage market but stressed that OakNorth should add another option and additional competition in the market as it sought to provide support for higher net worth individuals.
imogen.tew@ft.com
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