April Mortgages has announced a funding partnership with Scottish Building Society, to support the growth of its mortgage proposition.
Scottish Building Society will invest in both April Mortgages’ existing residential mortgage portfolio and, on a forward flow basis, provide funding to support its origination of longer-term fixed rate mortgages.
The mutual said that, being a building society, its mutual ownership structure and capital base made it a natural funding partner for April Mortgages. Scottish Building Society endorses stability over market cycles, with a preference for high-quality, longer-duration assets. It said this focus aligned with April Mortgages’ commitment to fixed rate lending, which gives borrowers certainty and flexibility over the life of a loan.
This will also broaden April Mortgages’ investor base and strengthen its funding model. The lender said it was an important step in its goal to build a leading long-term fixed rate mortgage platform, supported by institutional partners who share its purpose.
Dirk Bekkers, chief executive of April Mortgages, said: “Scottish Building Society is exactly the type of partner that fits our platform: long term in orientation, focused on quality and aligned on the principle that good mortgage lending starts with fair outcomes for customers.
“This partnership strengthens our funding base and supports the next phase of our growth as we continue to expand our distribution and product offering across the UK market.”
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Paul Denton, chief executive of Scottish Building Society, added: “As a mutual, we’ve always stayed true to our purpose of helping people save and buy homes, an ethos as relevant today as ever. We’re excited to support more homebuyers while diversifying our mortgage distribution.
“April Mortgages’ focus on long-term fixed rates and disciplined underwriting is a strong fit with our customer-first approach.”
Last week, April Mortgages appointed Michael Brown as its head of business development, following three appointments at the start of the year to drive its growth.