Regis Nyamakanga
17 October 2007
Johannesburg — INTEGER, SA's nascent home loans provider, received R140m worth of loan applications during its first week of trading, the bulk of them switch mortgages from established lenders, CEO Simon Stockley said yesterday.
He was "humbled" by the market response to his company, which is backed by Investec and financial services group Purple Capital, Stockley said.
The company, launched two weeks ago, is set to rattle established mortgage lenders with its favourable rates and personalised service.
Integer had captured more than R100m worth of mortgage applications 36 hours after it launched and more than R120m in its first week of operation, he said.
"Of the new applications submitted, 70% were switch mortgages from other lenders, while 20% were for new home purchases and 10% to refinance bond-free homes," Stockley said.
"This is an excellent start and gives me great confidence that our positioning as competition for the banks is what the consumer wants. People want choice and they are going to have it now that we are up and running."
Initially, all applications were made via the Integer website and call centre but after a tie-up with mortgage originators Dimension Home Loans, Independent Bond Originators, HP Nett and Bond Excel, applications were expected to swell.
"The custom-built IT system, which is behind Integer's ability to make the process (take) less than 48 hours from application to credit approval, was satisfactory," he said.
Integer offers standard 20-year amortised home loans, worth 85% of the value of the home, and up to an amount of R2,5m.
Although not a bank, it also offers banking services through a partnership with Bidvest Bank. Integer's loan book is funded through securitisation in domestic and foreign capital markets, said Stockley.
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