SIndo: Chill Money May Enter Mortgage Market

[Lightning]

The Sunday Independent reports that Chill Money are considering entering the mortgage market inside the next 12 months.

Good news if it occurs.

 

[Gordon Gekko]

Hmmm...only if it triggers downward pressure on rates.

 

[Sarenco]

As far as I know, Chill Money are just brokers. Unless there's a new lender involved it's hard to get overly excited by this news.

 

[Gordon Gekko]

As far as I know, Chill Money are just brokers. Unless there's a new lender involved it's hard to get overly excited by this news.

I could be wrong, but I think they're a front for AvantCard. They're certainly brokers for insurance purposes, but I don't think that's the case for lending.

 

[Sarenco]

Interesting, thanks.

I'm pretty sure that's the old MBNA credit card business so a move into secured lending would be a pretty significant change in their business model.

Still, any new competition in the mortgage market would be welcome.

 

[Monbretia]

They are advertising personal loans at the moment anyway, saw their ad few nights ago during the ad break, basically you could have loan approval by the time the break or programme, can't remember which, was over. My first thought was here we go again!

 

[MrEarl]

As far as I know, Chill Money are just brokers. Unless there's a new lender involved it's hard to get overly excited by this news.

That is also my understanding.

I believe that the credit cards and also the loans, are provided by Avantcard. I suspect there is nothing more than perhaps co-branding going on, if even that. Are Avantcard now considering entering the homeloan market ?

The possible provision of homeloans raises the question of where the funding will come from, if Chill are to be the actual lender ? If they propose to be more than just intermediaries, then the Central Bank would have to specifically authorise them and that's a slow process as I understand it - so have they already commenced the process, or perhaps been approved already ?

I suppose another option is for Chill to be taken over by an existing homeloan provider, who might then use the Chill brand to offer a homeloan product. Would the likes of Dilosk be a potential suitor, if Chill were to be taken over (or KBC perhaps) ?