The deal remains subject to contract. If the deal goes ahead, the firm will rebrand the packager Personal Touch Mortgage Administration Services.
It says it believes there is limited space for packagers in the future and those that will survive will need to be aligned to strong distribution and offer service differentiation, technology and innovation.
PTFS sales director Dev Malle says: “In a challenging market it is essential that we have control and certainty for our distribution and members. Owning an important part of the mortgage placement service means we can plan strategically without conflicting with third party businesses so we decided for the first time to own our own packaging function. The decision to enter into a process to purchase Clear was based on the fact it is well respected, is financially sound and has an excellent track record on service.”
Clear managing director Dave Booth adds: “We are absolutely delighted that Clear has reached agreement to formalise its relationship with PTFS. When a company of the size and track record of PTFS Ltd, knock on your door, you listen. We at Clear feel privileged to have been chosen by PTFS Ltd as its first venture into mortgage packaging.
“As a profitable packager we have been approached by a number of organisations, to form a business association, joint venture or merger. The approach by PTFS Ltd, to wholly acquire Clear Mortgage Administration Ltd offered by far the most attractive possibilities.”