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Sub-prime war as Mortgages plc hits back at BM

A war of words has broken out in the sub-prime market with Mortgages plc slamming BM Solutions which last week launched a campaign to name and shame lenders.

BM singled out Mortgages plc and igroup for criticism but Mortgages plc says the campaign will not succeed in deflecting attention from the growing competition in the specialist lending field.

Mortgages plc marketing director Peter Beaumont says since the lender was acquired by Merrill Lynch at the end of October 2004, its strong balance sheet and increased financial backing will allow it to compete head-on with BM Solutions.

Beaumont says: “BM Solutions’ meteoric rise to fame has been achieved without any real competition. For BM Solutions, winning market share is not going to be as easy as it has been.”

Other competitors which are looking to build their market share include Platform, SPML, GMAC-RFC and The Mortgage Works.

Mortgageforce managing director Rob Clifford says: “We have a very competitive marketplace but this is sinking to an all-time low in naming and shaming lenders operating on different business models.”

BM Solutions defends its campaign to name and shame lenders as a way of protecting brokers against possible complaints from clients in the future.

It says a client would be able to complain to a broker after realising several years into a mortgage they have been paying more with one lender than if they had been with another so the intermediary could get a bigger fee.

BM Solutions head of sales Alan Cleary says: “The competition is no different now to last year or two years ago. What Mortgages plc is trying to do is deflect the spotlight from its product range and its tactics.”Mortgage Edge, p36

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