Market Harborough Building Society has secured regulatory approval to enter the UK motor finance market, following member backing at its recent Annual General Meeting.
The society is now preparing to launch a new lending proposition in the coming months, aiming to bring a more transparent, customer-focused approach to a sector that has come under increased regulatory and consumer scrutiny in recent years.
The UK motor finance industry is worth billions of pounds and supports millions of vehicle purchases annually, but has faced growing attention over concerns around transparency, fairness and customer outcomes.
Against this backdrop, MHBS says it intends to differentiate itself by embedding clearer communication and ethical lending practices from the outset.
The Society has also highlighted its recent B Corp certification as evidence of its broader commitment to responsible business practices, positioning the move into motor finance as a natural extension of its existing lending operations.
Iain Kirkpatrick, CEO said: “Securing regulatory approval marks a significant milestone, enabling us to proceed confidently as we enter the motor finance arena. Our dedication to placing customers at the forefront is integral to our culture, and we’re committed to maintaining standards of fairness, transparency, and customer-focused lending. We aim to drive positive change within the industry, illustrating how member-owned organisations can benefit individuals and the communities they serve.”
MHBS described the expansion as a strategic step in its long-term growth plans, supported by ongoing engagement with regulators, who it says have played a key role in shaping its approach to market entry and consumer protection standards.
Alongside diversification, the Society has emphasised the wider benefits of its mutual model, including reinvestment into local communities through its Thrive programme, which supports regional projects and social initiatives.
The move also aligns with broader policy objectives encouraging growth in the mutual sector and increased competition in financial services, particularly where customer outcomes are a priority.
Further details on product design, launch timing and distribution will be announced ahead of the Society’s planned market entry next month, as it finalises preparations for its motor finance proposition.