Paul Carter, head of out-of-favour debt management and consumer loans company Relax Group, is considering taking the company into the front line of the secured mortgage business, just when many other sources have dried up in the credit crunch. The product of Carter’s Debts.co.uk purchase of loans and mortgage broker Relax Finance for £3 million, the company is contemplating establishing a large line of credit in its own name to lend on secured mortgages.

This might seem a brave move, when some major finance providers have recently pulled out of this field and the mortgage market is generally seen as dire. But Relax, whose Debts.co.uk side has tended to score counter-cyclically when times are tough for consumers, claims there is profitable potential in a field where it sees demand as strong, and competitors are pulling out.

The company insists it has no intention of becoming a lender of last resort. However, Relax Finance has already ‘ring fenced’ lines of credit with smaller lenders and is understood to be actively pursuing a variety of options.

Carter and his Relax colleagues are looking` at moving into other possible services, such as managed banking facilities. Having fallen nearly 90 per cent in two years to 22.5p, the shares could stage a rally if the new plans look like bearing fruit.

Relax Group	AIM	£5.49m	18.00p	0.00p
Click here for interactive charting
Other company articles:
Trading cheer from Relax			27/08/2008
Relax Group			08/08/2008
Relax moots mortgage move			05/08/2008