The merger between Charter Court Financial Services and OneSavings Bank has been completed creating a £1.6bn lender.
The deal unites the specialist mortgage brands of Kent Reliance and Precise Mortgages however both will continue to operate as separate brands.
Charter Court, owner of Precise Mortgages, stakeholders will own 45% of the combined group whilst OneSavings Bank, owner of Kent Reliance, stakeholders will own 55%.
Alongside Precise Mortgages, Charter Court owns Exact Mortgage Experts and Charter Savings Bank whilst OneSavings Bank has various brands including InterBay Commercial and Prestige.
Alan Cleary (pictured), new group managing director, said: “We’re very pleased today to announce the completion of the combination of OneSavings Bank plc with Charter Court Financial Services Group plc.
“Intermediaries have always been at the very heart of our propositions and I’d like to take this opportunity to reassure brokers that operationally they’ll notice absolutely no change.
“It will be business as usual with all the brands of the new group remaining committed to the intermediary market.”
Rob Jupp, group chief executive officer at Brightstar, took to Twitter to welcome the move.
Congratulations to our many friends at @Precise_Mtgs @KRFI_Mortgages for their long awaited merger creating a £1.6 Billion Bank in the UK under the One Savings Bank PLC. I honestly believe that this merger has the ability to unlock the paralysis of UK Banking #GameChanger
— Rob Jupp (@robjupp) October 7, 2019
Jupp added: “This merger is likely to be a significant and very positive game changer in UK Banking.
“The two most dynamic specialist lenders have now become one and I would expect the combined teams to unleash real change to a largely sterile, unresponsive UK banking sector.
“Their systems, people, leadership team and brands were ‘best in class’ when they were competitors, so the mind boggles at how good they are likely to be as one entity.”
Whilst Terry Pritchard, director of Charter HCP, was also quick to heap praise on the deal.
He said: “It is great news for the industry when two big names come together.
“Hopefully they will bring out a range of products that suit the marketplace as it is now.
“Let’s hope there is plenty of innovation and creativity moving forward.”
The Competition and Markets Authority (CMA) cleared the acquisition in July.
Andrew Montlake, managing director at Coreco, also commented: “As far as we are concerned it should be business as usual and I am sure the excellent team in charge will make a success of the new entity.
“It should enable them to open up a little more, innovate and offer a wider range of competitive products.”