CMS Cameron McKenna advises new mortgage provider, Checkmate Mortgages Limited
24.07.2008
CMS Cameron McKenna LLP has advised Checkmate Mortgages Limited (“Checkmate”) on its plans to launch as a new mortgage lender in early 2009. This follows confirmation that Checkmate has received investment backing to support its launch.
The capital-raising was led by Lazard and Co. Limited, acting as sole financial adviser and placement agent, and the majority of the capital has been provided by RIT Capital Partners Plc, Lord Rothschild’s family interests and Stephen Knight, Executive Chairman of Checkmate and the largest shareholder-individual. Spencer House Partners LLP acted as financial adviser to the Investors.
Funding for the mortgages themselves will be via flow agreements with other financial institutions, and agreement in principle has already been reached with two flow funders. It is intended that, in due course, warehouse funding lines will be added when available. Distribution will be via intermediaries and packagers.
The CMS Cameron McKenna team included corporate partner Peter Smith and corporate associate Jayne Brown.
“We are very pleased to have advised Checkmate on this transaction having advised Stephen Knight and his companies for many years,” commented Peter Smith. Stephen Knight founded the UK’s first packager (Private Label) in 1987. It grew it to be the UK’s largest privately owned distributor of mortgages by the time the company was sold to GMAC RFC in 1998, creating the packager industry, now represented by an estimated 500 companies distributing £30bn of mortgages per annum. Stephen was then appointed as Executive Chairman of GMAC RFC UK and grew the lender to top ten status in just five years from a virtual standing start, delivering gross lending of £12.1bn in 2006, and pioneering many innovations.
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