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L&C passes on sub-prime leads

Mortgage IFA London & Country is passing sub-prime loan leads on to franchise group Mortgageforce and specialist broker and packager The Mortgage Operation, saying such business is not its core target market.

L&C put the sub-prime business out to tender last year and has since signed deals with the two firms. The arr-angement with Mortgageforce starts this month while TMO is set to start getting referrals in February.

L&C says it is piloting the scheme with these firms as they share its commitment to generating income from lender procuration fees rather than charging client fees.

Mortgageforce will offer face-to-face advice but TMO brokers are phone-based. L&C says it will get an undisclosed financial consideration from completed deals.

L&C mortgage specialist David Hollingworth says: “There are a small number of clients – less than 1 per cent – that will have a credit history precluding them from mainstream borrowing.

“We have therefore initiated a pilot scheme referring clients with more severe credit difficulties.”

TMO managing director Mark Charlesworth says: “We have a number of strong relationships with sub-prime and niche lenders that we can place business with, including such companies as GMAC-RFC, Platform and Mortgages plc.”

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