View more on these topics

Business boost for multi-lender clubs

The proportion of business submitted through multi-lender mortgage clubs and packagers has jumped by 10 per cent in the last year, according to research from the Intermediary Mortgage Lenders&#39 Association.

In March this year, the amount of business placed through mortgage clubs rose to 49.4 per cent from 39.9 per cent last March and 35 per cent in June 2001.

The research reveals that the most popular mortgage clubs or packagers were Prudential&#39s Mortgage Club with a 29 per cent share of this intermediary market and Legal & General which was used by 28 per cent.

Prudential has enjoyed an increase in usage of 5 per cent since March 2002.

Other firms have not fared so well, with business placed through packagers Mortgage 2000 down by 4.4 per cent to 9.1 per cent market share. Business placed through The Mortgage Operation was down by 4.9 per cent to 8.3 per cent and through Pink Home Loans by 2.2 per cent to 8.2 per cent.

However, mortgage intermediaries are upbeat with regard to the future of multi-lender organisations, with 41 per cent saying their usage will increase over the next year and one in 10 saying that it will increase a lot.

Only 6 per cent of intermediaries expect usage to decrease and 3.5 per cent expect it to decrease a lot.

Imla chairman John Heron says: “In the past, lenders have preferred to deal directly, with no third party involved. These results reveal that mortgage firms are getting used to the benefits of dealing with packager firms.”

“This looks like good news for those in the packager industry. It should have a real impact on the distribution strategies of mortgage lenders.”

Recommended

Artemis- Aim VCT

Artemis- Artemis Aim VCT Aim: Growth by investing initially in five Artemis unit trusts, then in companies listed on Aim, Ofex and unquoted companies Opening-closing date: February 27 2003-June 30, 2003 Charges: Initial 5%, annual 2% Commission: Initial 3% Tel: 020 7367 5606

Trade bodies unite to deliver online training

Financial Assess, the joint industry training initiative developed by the LIA, CII and Sofa, went live last week with the aim of helping advisers improve their knowledge through online training and exams.The service, which costs £75 a year for each adviser, offers training and exams in eight modules for IFAs looking to maintain their knowledge […]

Misys plants giant Sesame seed in bid for network domination

Misys is relaunching its IFA business under the Sesame brand, hoping the move will open the door to successful flotation in July 2004.All five of its networks – Countrywide, DBS,Financial Options, IFA Network and Kestrel – are being collapsed into one mega-network that will trade as Sesame. It will have 7,000 members split between 6,000 […]

Battle lines are drawn

If you are sick of being kept on hold by life offices, join Financial Ltd director Charles Llewellen Palmer in his campaign of action. When providers ring you about a client, he suggests you:•Put them on hold.•Find an old Dictaphone and play music into the mouthpiece.•Ask the life office for an authority letter from the […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment