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BACK TO MEDIA RELEASES
EMBARGOED: 07.00AM MONDAY
1 OCTOBER
MEDIA RELEASE FROM INTEGER
NEW HOME LOAN PROVIDER
LAUNCHED
A new home loan provider was launched today with
the stated aim of introducing further competition
into the South African home loans market which
is currently dominated by the big four banks.
The new company, Integer, led by Simon Stockley
who founded SA Home Loans in 1999, has as its
investors, Investec and Purple Capital, the listed
financial services group.
‘We are aiming to replicate what has happened
in many international markets by challenging the
status quo with a product that is flexible, very
competitive on price and provides customers with
a service that is personal, easy and fast,’
said Stockley. ‘In a mortgage market characterized
by poor service and high costs, we believe that
the market is crying out for a fresh option. We
are looking for South Africans who are tired of
poor service, high interest rate charges and fees.”
The strong points of differentiation for Integer
will be service, product, innovation and price.
Integer believe that the average South African
home buyer has never experienced the fast, professional
and personalized service they deserve when committing
themselves to probably the largest single investment
they will make in their lives.
Craig Beney, Managing Director said, “Integer’s
offering amounts to a range of service and product
offerings, usually only made available to private
bank clients, but we are for the first time extending
this range of product offerings to the mass retail
market. Thanks to our custom built IT platform,
customers don’t have to adapt and search
for features. It comes in a personally tailored
package. Our turnaround times will be significantly
faster than the current average of 5 to 7 days
that characterizes the industry. We aim to achieve
a full credit approval, including external valuation,
within 48 hours. We will be targeting both new
and switch clients.”
Integer offers a standard 240 month amortized
home loan with two payment variations. Loans will
be offered up to 85% of the home value, and up
to an amount of R2,5 m. All Integer home loans
come with a standard one percent credit facility
on a Visa debit card at their home loan rate,
and free internet banking.
Financing for Integer’s loan book will
be provided via securitization in the capital
markets, a technique pioneered in South Africa
by Stockley and SA Home Loans. The South African
securitization market has grown exponentially
over the last seven years with total issuances
exceeding R86.7 bn in August 2007. Stockley says
in countries such as the UK and Australia, the
use of securitization has allowed the home loan
market to evolve to a point where banks now only
account for approximately 54% of the mortgage
market in the UK, and approximately 75% in Australia.
“With the South African debt markets now
rated as the 6th most liquid in the world (source:BIS)
and the relaxation of exchange controls allowing
offshore funding, there is an opportunity for
new entrants into the home loan market, increasing
competition and benefiting home buyers and owners.
“We do not see the current US sub prime
meltdown as a problem for launch,” said
Stockley, “but rather as an opportunity.
Once the dust has settled, asset managers will
once again be seeking quality mortgage assets
to fund and we are targeting the very best underlying
collateral. Also, an element of caution is not
misplaced in the quality of the initial book insofar
as that impacts on its rating and the ultimate
cost of capital funding.”
For further information please contact:
FD Beachhead
Nic Bennett 0766 877429 / nic.bennett@fd.com
Jean Dennis 021 487 9000 / jean.dennis@fd.com
 Integer
Simon Stockley, CEO 0832760068 / simon.stockley@integer.co.za
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