View more on these topics

L&G eyeing up mortgage distribution acquisitions

Legal & General says it will be looking to acquire mortgage distribution channels in 2009 as part of its growth strategy.

The mortgage club says it will use 2009 to growth: either organically or through acquisitions.

L&G head of mortgages Ben Thompson says: “Plans are to keep increasing market share – share for us has increased by 3 per cent or 4 per cent in 2008, so this has been a tremendous year for L&G – and we want to keep increasing in 2009 and beyond.

“That will be through organic growth and an increased sales focus through to bigger things like recruiting ‘lumps’ of distribution. Whether that is organic or otherwise has yet to be played out. We are looking upon this market as a real opportunity and work with people to make them stronger and increase our mortgage bandwidth.”

Thompson admits there will be consolidation within the mortgage distribution sector, but says much of the recent speculation has been over-hyped.

He adds: “You will see a coming together of organisations – for example we have an alignment with the Money Portal and we have more in the pipeline at the moment. You may see, for example, a strong wealth management business that wants to utilise the mortgage services of a strong mortgage player.”

Although L&G will remain bullish next year, Thompson says no one should underestimate the severity of the continuing downturn: “We are going into the market at a low level, rather than entering at a high level, which is different from 2008. With retrospect, the situation in the first few months of last year felt grim, but now it looks very good indeed.

“One only has to look at the States to see that 2009 will be a very difficult year indeed.”

Recommended

The Year that went bear-shaped

Sour taste of Lehmans

Ray Boulger, senior technical manager, John Charcol

It was really not until early this year that it dawned on people generally that things were going to get a lot worse before they got better.

Libor spread still too high for lenders

Three-month Libor has dropped to 3.13 per cent, a fall of 75 basis points since the start of the month. Mortgage lenders welcome the drop but say the 1.13 per cent spread is still too much to improve rates drastically.

Savills releases profit warning

Savills has issued a profit warning ahead of its full year results due to significantly restricted business in its mortgage broking arms.

Soft sterling brings big rise in PI premiums

Professional indemnity insurance premiums will rise by 15 to 20 per cent next year or double that if the market hardens after the FSA confirmed it will raise minimum cover requirements, says PYV.

2

Britain's “Forgotten Army”: The collapse in self-employed pension membership – and what to do about it

Pension scheme membership among employees has risen by more than five million in the past four years because of the policy of automatic enrolment into workplace pensions. But Britain’s army of 4.4 million self-employed people, who account for one in seven of the workforce, are not covered by automatic enrolment. Pension coverage among the self-employed […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment