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Hargreaves Lansdown sets up mortgage arm

Hargreaves Lansdown is moving into the mortgage market, saying it is confident that it can offer better deals than are currently available in the UK.

In a move to diversify from its core investment and pension business, it is mailing 400,000 clients with details and is recruiting 10 specialist advisers to join the new division, Hargreaves Lansdown Mortgages.

The firm says it has met major lenders, including Halifax, Nationwide and Abbey, for talks on negotiating exclusive house purchase and remortgage deals suited to its extensive high-net-worth client base.

It says it is confident that lenders will want to offer it competitive products because its clients will be low-risk, looking for low loans to value and unlikely to fall into arrears.

Hargreaves says it will replicate the volume approach that it has used to become one of the biggest Isa, stakeholder and annuity brokers.

Managing director pensions Adam Norris says: “By applying the Hargreaves Lansdown way, we believe we can offer a better proposition than is available. If we cannot deliver the best deals in the market, we will not put our proposition out there. It is a big market and we would expect to take a few mortgages off both the likes of Charcol and smaller brokers.”

Prudential national mortgage manager John Malone says: “In the next three to four months we will see other major players on the pensions and investment side expanding into mortgages.”

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