Five mortgage broking giants have joined forces to form a consortium to negotiate cheaper deals and higher proc fees with lenders.
Alexander Hall, Chase De Vere Mortgage Management, Cobalt Capital, Hamptons International Mortgages and Savills Private Finance write £10bn worth of business a year between them and hope that combining will also encourage better service from lenders.
The group is called Concordia and the firms claim the size of the scheme puts it on a level with the industry’s major networks and clubs as one of the top five mortgage distributors. It will negotiate exclusive deals with lenders as a group, meaning providers no longer have to deal with the five separately.
The venture has been likened to packager associations such as the Professional Mortgage Packagers’ Alliance but on a bigger scale.
Concordia, which is Latin for harmony, will be chaired by Alexander Hall chief operating officer Andy Pratt and will review whether to admit further members in six to 12 months. Each of the five members has pledged not to poach staff from each other. Customers will not see any changes to the branding of products.
It has already received the backing of HBOS and has meetings planned with other lenders to attract vital support.
Pratt says: “This will establish ourselves as a group with volume. We do not get what we deserve in terms of service as individual firms. There has not been a similar group of industry brokers.”
Savills managing director Mark Harris says: “This makes Concordia one of the top five mortgage distributors.”
Hamptons managing director Kevin Duffy says: “The group has the potential to deliver significant cost savings to lenders by dealing with one account rather than five.”
HBOS head of mortgage intermediaries Nigel Stockton says: “There are some aspects that simplify things for lenders. Scale and costs will be important for lenders and brokers.”