Key Group has bought specialist packager V Loans to target the second charge market as it diversifies out of equity release.

The deal, subject to regulatory approval, enables V Loans to target its second charge products to the over 50’s market while Key is able to offer the V Loans proposition to its referral partners as well as direct to consumers.

Colin Taylor, chief executive of Key Group, said: “The secured loans market is growing strongly and the acquisition of V Loans enables Key Group to enhance the range of solutions we offer customers and advisers.

“V Loans shares our focus on the importance of delivering the highest quality and bespoke personal service and we look forward to working with the team.”

Dave Pinnington, director of V Loans, added: “We are absolutely delighted to be joining the Key Group which will give us the opportunity to work closely with their hugely successful executive management team.

“This will undoubtedly give us the platform to develop our ambitious growth plans within the secured lending sector for mortgage intermediaries and also provide access to important additional financial services products for customers of Key.”

V Loans was founded by Dave Pinnington and Marie Grundy in 2007 and focuses exclusively on the intermediary market. Key plans to retain the V Loans brand and the packager will continue to operate from its headquarters in Wilmslow, Cheshire.