Three leading mortgage clubs have moved to freeze out rival networks by striking a major distribution deal barring their competitors' appointed representatives from accessing their exclusive products.
Mortgage Next, Mortgage Intelligence and Pink Home Loans have agreed to distribute their exclusive direct-to-lender products purely through each other's ARs and directly authorised intermediaries. The move, thought to be the first of its kind, means that after regulation, rival network members will no longer be able to access the loans negotiated exclusively by any of the three clubs.
The decision has been welcomed by lenders, including BM Solutions and Mortgage Express, with both saying they are happy to help the clubs differentiate their offerings. But fears remain that smaller mortgage firms will lose out to the giant networks when regulation comes into force in October.
Mortgage Intelligence managing director Sally Laker says: “We do not want to enhance our rivals' propositions by allowing them to access our exclusive deals. It is a competitive market and we want intermediaries to come to us, not them.”
Mortgage Express head of business development Tim Sturley says: “We will be happy to continue to help them to differentiate their propositions to their ARs as we enter the regulated world.”
Sesame product manager of mortgages Andy Young says: “I am not that surprised. Clearly, the biggest networks will have the most leverage with the lenders.”