You are here: cherry > Press releases for February 2014 > GENWORTH REVEAL NEW RELATIONSHIP WITH BATH BUILDING SOCIETY

27 February 2014

Genworth, the provider of mortgage insurance products to lenders in the UK, has today announced a new relationship with Bath Building Society.

The regional Building Society has opted to use Genworth’s answer to Help to Buy, a mortgage insurance product, rather than participate in the State Help to Buy Scheme (HTB2).

Bath will utilise Genworth’s mortgage insurance in order to offer products in the high LTV market. It will be the first time the Society has brought such products to market without requiring, for example, a parental guarantor. It intends to issue mortgage products which require smaller deposits with its proposition aimed predominantly (though not exclusively) at first-time buyers in the region.

Genworth’s mortgage insurance product is offered to all UK lenders who are looking for an alternative to the Government’s Help to Buy mortgage guarantee scheme. It allows lenders to access bespoke arrangements which they can tailor to their own needs rather than rely on a ‘one size fits all’ approach which is offered through the taxpayer-funded guarantee.

Genworth believe there are a number of advantages for lenders using private mortgage insurance to offer prudent high LTV mortgage products including greater flexibility, bespoke cover and premium options, access to Genworth’s administration and operational expertise, the ability to utilise a tried and tested claims process, and they may also use the insurance for niche product areas and existing business.

Given the increased level of competition and product choice seen in the higher LTV lending bracket since the launch of HTB2, Genworth has contacted all lenders either currently active, or looking to be active in this space urging them to review their options.

Simon Crone, Vice President, Commercial - Mortgage Insurance Europe at Genworth, said:

“It is clear from our discussions with all lenders that there is a renewed appetite for lending in the high LTV space and a willingness to engage with our private Help to Buy product in order to be active and compete with HTB2 participants.

“Having Bath Building Society as a new Genworth client is a real coup for the business and by using mortgage insurance it will be able to offer products in this space and benefit from the range of bespoke options we provide. There are clearly many differences between our products and Help to Buy and by utilising our products Bath Building Society is sending a clear message that the private market is open for business and can deliver stability and certainty for lenders, not just over the next few years but far beyond the anticipated lifespan of HTB2.

“We fully anticipate that more lenders, particularly in the building society sector, will be following Bath’s lead ensuring they can continue to actively lend at high LTV levels and, at the same time, ensure they are free of Government intervention and will not need to call upon taxpayer’s money at any point in the future.”

Dick Jenkins, Chief Executive at Bath Building Society, commented:

“We are pleased to announce our new working relationship with Genworth and look forward to using its private mortgage insurance product in order to help our lending activity in the high LTV space. We are focused on prudent, responsible lending and at the same time are committed to helping those prospective customers who have small deposit levels to ensure they can fulfil their home-owning aspirations. Genworth’s clear and transparent proposition, its experience in this market, financial strength and the level of expertise that will be available to us were particularly persuasive factors in Bath Building Society opting to work with the team there. We believe we now have the right partnership and product to ensure we continue to offer mortgage options to those borrowers in the high LTV bracket.”
For further information, please contact:
Rob Griffiths
Public Relations for Genworth
Tel: +44 7983 641 566
Email: rob@whitedragoncomms.co.uk

Suzy Awford
Public Relations for Genworth
Tel: +44 208 380 2080 / + 44 7971 142 233
Email: suzy.awford@genworth.com

Genworth Mortgage Insurance in the UK
Genworth focuses on mortgage insurance and lifestyle protection in the UK and Europe, working with building societies, banks and other financial institutions. Since 1993, Genworth has been offering flexible mortgage insurance solutions to suit different lender requirements, whether that is on a loan-by-loan basis or at a portfolio level. Our protection to lenders makes high loan-to-value mortgage loans (where the borrower does not have a large deposit) available to good credit-quality borrowers. Genworth is regulated by the PRA and FCA, has unmatched expertise and capacity including a unique arrangement with highly rated reinsurers.

About Genworth Financial
Genworth Financial, Inc. (NYSE: GNW) is a leading Fortune 500 insurance holding company dedicated to helping people secure their financial lives, families and futures. Genworth has leadership positions in offerings that assist consumers in protecting themselves, investing for the future and planning for retirement -- including life insurance, long term care insurance, and financial protection coverages -- and mortgage insurance that helps consumers achieve home ownership while assisting lenders in managing their risk and capital.
Genworth operates through three divisions: U.S. Life Insurance, which includes life insurance, long term care insurance and fixed annuities; Global Mortgage Insurance, containing U.S. Mortgage Insurance and International Mortgage Insurance segments; and the Corporate and Other division, which includes the International Protection and Runoff segments. Products and services are offered through financial intermediaries, advisors, independent distributors and sales specialists. Genworth, headquartered in Richmond, Virginia, traces its roots back to 1871 and became a public company in 2004. For more information, visit genworth.com. From time to time, Genworth releases important information via postings on its corporate website. Accordingly, investors and other interested parties are encouraged to enroll to receive automatic email alerts and Really Simple Syndication (RSS) feeds regarding new postings. Enrollment information is found under the "Investors" section of genworth.com.