Phoenix offers hope to Network Data's ex-ARs
Share
The Phoenix Group, which recently acquired the assets and client bank of Network Data and Mortgage Broking Services Limited, says it is confident it can recoup some of brokers’ lost commissions from lenders.
The private equity group, which also owns packager Solent Mortgage Services, has bought the assets of the networks, including computer systems and old agencies.
Paul Wreford, director at Phoenix, says it plans to try and recoup some of the commissions that former appointed representatives are owed by lenders but does not want to be over-optimistic.
He is also keen to stress that the firm is not in competition with the former ARs of the networks.
He says: “We hope to get something back for those who have lost money. We do not want to build their hopes up but anything is better than nothing.”
However, Wreford says the firm has received calls from angry ex-ARs of Network Data.
He adds: “We are not trying to compete with the ARs. Nobody at this company has previously had any connection with Network Data or MBSL and all commission that we receive will be passed on to administrator Baker Tilly.”
Some ARs are angry that Pheonix could have access to their old client bank, but Wreford says he will try and put them back in touch with their clients where possible.
Contracts have also been exchanged for Botleys Mansion, Net-work Data’s former headquarters in Chertsey, Surrey, with Bijou Wedding Venues.
The mansion was sold for £3.55m, with the associated fixtures, fittings and IT equipment sold separately for £256,475.
Baker Tilly was unable to say what, if any, commission former ARs will receive as Bank of Scotland first needs to be paid the £3,856,440 of secured debt it is owed and preferential creditors, owed £106,702, will be next on the list.
The £5,172,836 of unsecured credit claims submitted to Baker Tilly will be the last to be paid.
If you enjoyed this article, sign up here to receive daily email updates from Mortgage Strategy and Follow @mortgagestrat
