Start Mortgages, the firm that lends to people with poor credit histories, advanced €309 million to Irish customers last year.

Start's largest shareholder, the London-listed mortgage lender Kensington, said yesterday that the firm had received business from more than a quarter of mortgage intermediaries in the Republic.

John Maltby, chief executive of Kensington, said the company was "very pleased" with Start's performance since its launch at the end of 2004.

He said the firm's €309 million in loans had been based on "good margins" and an average loan to value of about 63 per cent.

Mr Maltby said the business had gained momentum as the year progressed, with about 40 per cent of the new loans advanced in the final quarter.

The average loan size, he said, stands at about €150,000, with "no real geographic concentration" in the business.

Start is 60 per cent-owned by Kensington, with the remainder held by senior management in the Republic.

The company concentrates on lending to clients who have trouble getting loan approval elsewhere, including those with historical credit problems and self-employed individuals.

Start, which charges higher interest rates than more mainstream lenders, estimates that the market for "sub-prime" mortgages in the Republic is worth up to €4 billion.

"There is good opportunity for future growth," said Mr Maltby.

Start was particularly encouraged last year by the reception it had received from brokers, he added.

"We're delighted with the response from intermediaries. They've really woken up to the opportunity," Mr Maltby said.