Precise Mortgages' parent Charter Court plans IPO

Precise Mortgages' parent company, Charter Court Financial Services, has appointed Royal Bank of Canada and Barclays in preparation for an Initial Public Offering (IPO), later this year.

Nick Field, Associate Director at Arrowpoint Advisory, discusses the upcoming IPO with mortgage market intelligence magazine, Mortgage Solutions.

Nick comments: “the Charter Court IPO will be an important test of confidence in the UK specialist mortgage market, post the Brexit vote.”

Whilst some traditional banks operating in the UK fret over their future access to the European market, Brexit has proven positive for the challenger banks in one important respect: low interest rates are now expected to persist for longer. The specialist mortgage market has performed well in the aftermath and other M&A deals such as ENRA and Together Group have now successfully transacted.

Field goes on to say that the challenger business model faced some hurdles of its own, however, which would need to be addressed early in the IPO process. One such question is how the increase in capital weightings proposed under Basel III will impact the profitability of buy-to-let mortgage business in the medium term.

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