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Cartel throws lifeline to NMS members

Mortgage intermediary Cartel is offering a lifeline to members of Perthshire mortgage processor National Mortgage Services following its closure to business on April 1.

Cartel says it has started to approach ex-members as it sees this an opportunity to expand its national business, particularly into Scotland, and says it already has five who have expressed a keen interest in joining.

It is understood that 80 members of NMS are affected by the closure. Parent broker company Easy-Life (UK) is not answering phone calls and its website is not functioning.

NMS’s decision to stop trading came to light when a memo surfaced saying it was not economically viable to continue trading in its present format.

NMS told its brokers that it had arranged to transfer them to independent mortgage broker Mortgage and Loans Savings Centre. But MLSC director Jack Abraham has told Money Marketing that only one member of NMS is interested in taking up the offer and, of the 80 names he was given, only a handful would be appropriate for his business. NMS was unavailable for comment.

Abraham says: “I am in a position to offer new cont- racts and training as we are looking to expand but we are now only looking at four or five NMS names.”

Cartel director of compliance John Rattigan says: “Firms are becoming financially unviable because of the extra costs imposed by regulation. It is indicative of our times.”

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