A new lifetime mortgage outsourcing service, Onyx Servicing, has launched in the UK to meet the growing demand for equity release mortgages.
The new firm will provide back office and regulatory support for existing and new banks, lenders and life insurers operating in the equity release sector, which is set to face new mortgage rules in April 2014.
The new service will be headed by lifetime mortgage provider Stonehaven’s managing director Georgina Smith.
Smith said more banks, building societies and life companies are set to enter the equity release space.
"A growing older population and its uses as a solution for specific market concerns such as shortfalls on interest-only mortgages means that Onyx is the ideal solution for this expanding industry," Smith added.
"Onyx has the client service experience to provide high quality service to older customers, who are often experiencing significant changes and worries, or families affected by bereavement.
"Onyx is different to other administration servicing companies who do not have the same knowledge and insight into the lifetime mortgage industry that we can offer. Over the last seven years, the team behind Onyx Servicing has developed significant expertise along with best practice policies and procedures in the market."