Barnes Home Loans executive director Janelle Rayner has urged non-bank lenders to join forces to combat the strength of the big four.
Ms Rayner told Mortgage Business she expects to see “a lot more consolidation” among non-banks in the future.
“The bigger lenders do have a lot of strength and as smaller lenders we need to get together and strengthen our position because there needs to be alternative lenders out there,” she said. “You can’t just have the big four.”
On February 17, non-bank lender Homeloans Ltd entered into a binding agreement to acquire Barnes Mortgage Management for a consideration of $2,450,000.
The acquisition is due to be completed on 27 February.
Speaking to Mortgage Business, Homeloans chief executive Scott McWilliam confirmed that Barnes will not be rebranded.
“We value the Barnes Home Loans brand,” Mr McWilliam said, adding that the Barnes and Homeloans brands will sit “side by side”.
Commenting on the deal, Ms Rayner said both groups have the same philosophy on credit and are focused on solutions for brokers.
“It’s going to give them [brokers] more competitive pricing, a better product range and new systems,” she said.
“Obviously we can bring in new efficiencies into the business; we do give very fast approvals but we hope we can improve on that.”