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I find the recent developments at Advantage Mortgages quite interesting. For one, there seems to be quite a bit of organic activity recently and I can only think they are trying to be a big player in the Secured Loans market and also look like they’re jumping the gun in some other areas too.

Lets look at what’s gone on.

Firstly, under the name Advantage Home Loans, they get bought by the US based Morgan Stanley in December 2005. Mortgage Stanley announces the purchase as a strategic move into the Sub Prime UK market.

It then announced the name change to Advantage, the dropping of its packaging proposition and then that it would become a sole lender later in the Summer. It also announced a direct to borrower website.

It’s now also launched a new product, called Flexishare, this is a shared equity mortgage to help people get onto the property ladder. The idea is someone can buy a house with part of the equity being owned by the government and Advantage. The person taking out the mortgage would then pay ‘rent’ on the proportion they don’t own. This is not a new idea and the same concept has been used for ex council house tenants, the difference here is that the product is being broadened to appeal to many many more people. Perhaps Advantage has spotted what could be a very lucrative niche in the market.

So basically lots and lots of stuff happening at Advantage, and all in a relatively short space of time.

I think we will be keeping an eye on them