OakNorth is entering the retail mortgage market with lifetime tracker rate products, aimed at affluent individuals with atypical sources of income.
The lender said that people with non-uniform or atypical sources of income require more bespoke lending solutions, and that, having provided over £3bn in bespoke loans to UK entrepreneurs since its launch, OakNorth claims it has the necessary expertise and tailored credit analysis models to cater to this market niche.
Ben Barbanel, head of debt finance at OakNorth, said: “High-street banks have limited mortgage offerings when it comes to borrowers who don’t have a regular or established source of income, such as the self-employed or business owners.
“Private banks, on the other hand, tend to have high entry requirements that are unfavourable to most of these individuals. Lenders are typically unwilling to offer bespoke terms to their mortgage products and as a result, more than one in 10 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.”