Chase de Vere Mortgage Management is setting up a mass-market fee-free mortgage intermediary firm which it believes could be the dominant player in the mortgage market.
The new business, which is still to be branded, is partly funded by GMAC-RFC and managed by Savills Private Finance founder Mark Chilton. It will be a national phone-based advisory service operating from a call centre on the South coast.
It will open for business in the summer with 20-25 brokers but Chilton says there is no limit to how many consultants the firm will take on.
Chase de Vere is aiming the new service at what it believes is a new customer base of mid-market borrowers who are unwilling to pay fees but still value the services of an intermediary. It says these borrowers are currently unlikely to approach Chase de Vere.
Managing director Simon Tyler has set up a new holding company, Mortgage Ventures, which owns 100 per cent of the new firm along with Tyler's majority shareholding in Chase. GMAC-RFC has taken a minority shareholding in Mortgage Ventures.
Chilton says: “This new firm is built on a different business model reflecting today's marketplace. It will enhance the productivity of consultants. If we have 100 on board, we will be the dominant player in the market.”
Tyler says: “For some time, the mortgage broking market has been polarising between fee-charging and non-fee-charging business models. I feel that this trend will be accelerated by the FSA's regulation of mortgage distribution and the desire of lenders to see the market consolidate. As a result, it is desirable for business owners to diversify their distribution strategy across more than one section of the market.”
GMAC-RFC head of strategy and investments Gina Collman says: “GMAC is already established as a minority investor in a number of businesses and this investment complements that strategy.”