The groups have today revealed a deal where all of TMTG’s mortgage business, including the Vision Network, will be routed through L&G’s mortgage club.
L&G will be providing mortgage access to TMTG’s ARs and DA representatives.
This move brings together L&G’s 9000 club members, as well as TMTG’s 750 ARs and 3,000 DAs. The combined group will now make up over 10,000 members, making it one of the largest mortgage distributors in the UK. The new ‘L&G-Mortgage Times’ club will be operational within two weeks, and will be available to all L&G and TMTG members.
L&G says the deal is a good fit as L&G has historically aimed at larger ARs and DA firms while TMTG focused on smaller advisers.
All commission payments owed to TMTG members will in the future come straight from L&G mortgage club.
TMTG says these talks have been going on for six months and blames it for its recent commission payment problems.
TMTG head of marketing Payam Azadi says: “The payment issues are down to this, and they will now be rectified. We have had to develop a whole new business operation system over the last four or five months, internally we had to sort ourselves out. No one has been more frustrated than us.”
L&G head of mortgages Ben Thompson says: “This is two, big strong distributors standing together, offering advisers a complete package. This feels like the first, significant big move in distribution, and it is structured in the right way.
“We are in affect providing certainty on the mortgage club side of TMTG’s business, allowing it to concentrate on building on other activities such as its network proposition.”
TMTG director Paul Carmody says: “We could have buried our heads in the sand but we have said ‘what can we do? How can we make ourselves stronger?’ This deal suits us and it suits L&G.
“We are still fully independent, we are just taking the good bits of L&G’s proposition and offering them to our members.”