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Club together on mortgages

It is with considerable interest that we have been following the various articles and comments made by a variety of industry commentators in relationship to lenders and the role of mortgage clubs.

Even before statutory regulation, most lenders were very supportive of mortgage clubs because we created quality distribution coupled with economies of scale.

Furthermore, as Mark Howell points out in his article in last week’s Money Marketing, the many benefits and services both to lender and mortgage intermediary created by clubs should also be taken into account.

We are sure then that when Harry Katz now reads that we are in total agreement and sympathetic with his comments, this will possibly surprise but hopefully reassure him. Why? Mortgage clubs like ours are facilitators helping both intermediaries and lenders to work together but now, unfortunately for the intermediary market, our regulator who does not entirely understand mortgage distribution in the mortgage market has intervened.

We believe that at no time should our company names appear on a consumer document, regardless of whether we have negotiated some income from the lender.

Bearing in mind it is the intermediary who has provided the advice and is taking responsibility for his actions, we, together with a number of our competitor colleagues, would welcome more Harry Katz’s supporting our view as we tackle the FSA again.

In the meantime, we apologise to Harry on behalf of the FSA for the situation he now has to cope with.

John Malone
Managing director
Premier Mortgage Service;
and Nick Baxter,Director,

Mortgage Promotions

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