Second charge lender Prestige Finance to close

Following OneSavings Bank's merger with Charter Court Financial Services last year, the Combined Group initially planned to maintain all of its existing lending brands.

However, OneSavings Bank has today announced "a highly attractive and unsolicited commercial opportunity that has arisen for OSB to sell Prestige House", Prestige Finance's principal place of business.

The Group says it now plans to create a ‘Centre of Excellence’ for second charge lending by migrating the existing business of Prestige to Wolverhampton and discontinuing the Prestige brand for new lending.

Prestige Finance - the longest established second charge mortgage specialist in the UK - had a second charge loan book with a gross value of £372.8m as of 30 June 2019.

In a statement, OSB said it will "review opportunities to reallocate staff" to other appropriate roles, but said the decision is "likely to have an impact for those employed in Prestige House and by the Prestige brand".

Alan Cleary, group managing director of mortgages at OSB, said: “The attractive offer for Prestige House has led us to consider this proposed restructure which, we believe, would enhance the overall second charge loan proposition.

“We are actively engaging with our key intermediary partners on this proposal to ensure minimal disruption. We are also consulting with our colleagues at Prestige Finance who are directly impacted by this proposal to ensure they receive the support they need.”