Mortgage House is preparing to relaunch in March next year, complete with a new funding program, a prime new North Sydney office address, and its very own in-house ‘cloud’.
Speaking with Australian BrokerNews, Mortgage House CEO Ken Sayer said the shape of the new business would be a "huge difference from the status quo", and would be Mortgage House Mark II.
Being driven by managing director Sarah Roberts, Sayer said that the purpose was to tap into a "superior applicant pool", and that the B2C business would become a "substantial employer".
The new funding program, being trialled at present, is a mix of off-balance sheet financing and Mortgage House's own balance sheet funding, which includes non-conforming capabilities.
"The new funding program is a hybrid, and we are fairly confident we are the only ones [non-bank lenders] in this space," Sayer said.
"If the customer ticks all the boxes, we go and get that loan insured, and fund it through off-balance sheet capabilities; if the client does not meet the AAA criteria, we will still fund it like a bank loan, but we will fund that on our balance sheet," he said.
In a "symbolic" move, Mortgage House will also relocate from Paramatta to North Sydney, where it is building its own "private cloud", to increase efficiency of access to data and ensure data integrity.
Sayer said the business will continue to recruit, but was now focused on qualified and experienced lenders with a financial foothold who will work from new Mortgage House shopfronts only.
Sayer said Mortgage House is currently writing a lot of business with "heartland bank customers", particularly those maxed out on credit cards after taking up easy credit offers from banks.
"These are dinky-di Aussies who haven't done anything wrong. The banks have been throwing credit cards at them, and unfortunately they have taken up the offers.
"We are going to rip them from their credit cards and put them into a much cheaper normal loan, when the banks won't touch them," he said.
Yesterday, the non-bank dropped interest rates for the second time in three months on all fixed rates by up to 84 basis points, bringing its lowest rate to 6.17% for 1-year terms.
Clawbacks to keep Mortgage House rates steady