FAST-GROWING Kent Reliance Building Society is expanding operations beyond the county with a new service for the Channel Island of Jersey.

In a pioneering move, the Chatham-based society has overcome obstacles facing building societies hoping to break into the Jersey market by setting up a new company.

Jersey Home Loans will offer all the services available to members of Kent Reliance, breaking the stranglehold traditionally enjoyed by banks on the island.

All inquiries from Jersey residents will be handled by staff in Sun Pier, Medway.

Mike Lazenby, chief executive, said it was important for Kent Reliance to diversify into other markets to protect it from a possible downturn in the domestic market.

"I think the housing market in the UK is going to go through a bit of a dip, so there's a good rationale for looking at alternative markets to shelter our position," he said.

Mr Lazenby said the Jersey housing market was about 15 years behind the UK and not so volatile. He insisted that Kent Reliance would be helping ordinary Jersey residents, not "fat cats" who settled there for tax reasons.

"We want to offer the residents of Jersey a building society-type product that is superior to that of the banks."

Kent Reliance already has a head start by taking on a portfolio of mortgages from a Jersey-based lender.

The new operation is unlikely to create new jobs in Chatham in the early stages, Mr Lazenby said, but if business takes off, then there might be new opportunities.

Kent Reliance, claimed by some industry sources to be the country's fastest-growing building society, is on course for record assets of around £600 million this year.

It has introduced a new corporate image, invested in new technology and launched best-buy mortgage and savings products.

Mr Lazenby denied that rapid growth posed a risk. He said: "We are financially stable, we've got business coming in on both sides of the balance sheet, and we've got some really good people here."

Around 110 staff work at Sun Pier, with executives locked into contracts requiring a year's notice period.