OneSavings Bank (OSB) has announced plans to close its second charge lending arm Prestige Finance and create a Centre of Excellence in Wolverhampton.
OSB merged with Charter Court Financial Services back in October last year and had planned to keep the Prestige brand running.
However, OneSavings Bank has now issued an update to its stated post-offer intention statements after it received an offer for Prestige House, the home of Prestige Finance.
A statement read: “A highly attractive and unsolicited commercial opportunity that has arisen for OSB to sell Prestige House.
“The attractiveness of this opportunity means that OSB now intends to sell Prestige House.
“As a result of this sale and the operational capacity available (or which can be created) in other OSB existing locations, OSB now intends to create a ‘Centre of Excellence’ for second charge lending by migrating the existing business of Prestige to Wolverhampton and to discontinue the Prestige brand for new lending.”
The second charge loan book serviced under the Prestige brand was broadly flat against the financial year ended 31 December 2018, with a gross value of £372.8m as at 30 June 2019 (31 December 2018: £368.0m).
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.”
Prestige, which was previously known as Sheldon & Stern, was the UK’s longest established second charge lender.