It has been revealed by Mortgage Strategy that Virgin Money is getting ready for the introduction of its hoped-for range of mortgage services by the end of 2010 and is going to use the help of brokers.

Virgin Money, part of Virgin Group, founded by Sir Richard Branson, informed that its products would at first be available without intermediaries, but it considers them to be the main distribution channel.

A spokesman for the company said since it obtained its banking license it had intention to launch a range of savings products. In all likelihood, it will take place in the summer, followed by the introduction of mortgage range.

This is the first time Virgin Money has revealed when the launch of mortgages is projected to occur.

The spokesman informed that the new mortgage range was planned to be launched by the end of this year and would be funded from the deposits of Virgin Money.

He added they wouldn’t be able to do without brokers since they were a major distribution channel. Still, the company will not use brokers right away after the launch of new mortgage range.

Virgin Money made its presence on the retail banking market in the beginning of this year, by purchasing a private bank Church House Trust and enabling it to launch its UK banking business.

US tycoon Wilbur Ross has invested £100m into Virgin Money to get a 21% stake in the company. He has also promised to put in £500m for supporting the company’s bid to take over the 318 Royal Bank of Scotland branches after the European Commission ordered the bank to get rid of them.

Jonathan Clark from Chadney Bulgin said that Virgin had long been recognized as an innovative company.

He added that even though his company didn’t have the opportunity to access the mortgage deals of Virgin Money straight away, it was encouraging news that one more loan provider was entering the market.

Andrew Montlake from Coreco Group agreed that new lenders appearing on the market, especially if they were going to use brokers, would be great for stimulating competition.

Other organizations that are thinking about setting up home in the UK mortgage industry are Metro Bank, Aldermore, Tesco and the Post Office.


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