View more on these topics

MGM diversifies with mortgage shop franchises

Life and pension specialist MGM Assurance is setting up a franchised

network of mortgage shops offering independent advice as part of a major

diversification drive.

It plans to open 40 high-street branches across the UK within the next

five years after it commissioned research which found that 80 per cent of

borrowers would rather buy through a broker than direct from a bank or

building society.

It is looking to recruit experienced mortgage brokers and IFAs for the

affluentareas where it hopes to operate the franchises, which will come

under the banner g2m The Mortgage House.

Brokers will charge clients fees based on the complexity of each mortgage

case less the procuration fee offered by the lender. If the introducer fee

matches what the broker is charging, then the client will not have to pay a

fee. MGM claims more than 50 per cent of borrowers in pilot trials in

Chelmsford and Portslade did not need to pay.

It says it will help franchisees find suitable premises and will provide

them with extensive marketing support and Mortgage Brain electronic

loan-sourcing equipment.

g2m general manager Clive Davis says: “Homebuyers want independent

face-to-face advice. Despite this, many stumble into a bank or building

society because they cannot see an alternative. g2m has been designed to

meet this gap.”

Mortgageforce managing director Rob Clifford says: “We are surprised that

we have not met with competition in the last eight months but new entrants

are welcome as franchising is a terrific business model.”

Recommended

Skandia bonds with pension trustees

Moving on to the main useful features and strong points of the bond, Reid says: “Access to a variety of funds and managers plus relatively cheap and easy switching.”Bumford likes the relatively low limit on initial and top-up premiums, the wide range of funds and the penalty free switches.Elms lists: “Guaranteed pension fund, free switching, […]

Life offices slam Opra on multi default funds

Life offices are claiming an oversight by Opra unwittingly hands somestakeholder prov-iders an “unfair advantage” and could open employers up tomisadvice liabilities. This week it is revealed that the regulator has allowed some providers tooffer more than one default fund on stakeholder schemes although manyproviders had believed they were only allowed to register one default […]

Windfall shares test case goes to court

The windfall shares test case to decide whether demutualisation shares and benefits should be taken into account when calculating loss in the pensions review is being heard next week. The &#39Needler Financial Services Limited v Taber&#39 case is expected to start on 16 July for three days at the High Court at the Royal Courts […]

North-south divide grows in house market

Homes in Greater London cost nearly twice as much as the national UK average, according to new figures released by Halifax.House prices in the capital surged by 7.7 per cent in the second quarter of this year and are now 87 per cent higher than the UK average.Northern Ireland saw the greatest surge in new […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm

    Email: customerservices@moneymarketing.com