MORGAN Stanley finally bought Advantage Home Loans last week amid reports that it was sold for 4m, with 2m going to each partner and an undisclosed earn-out deal if the new venture is successful.
Advantage Home Loans made the announcement last week, more than a month after Mortgage Strategy exclusively revealed the US giant had been in talks with the packager.
Keith Dearling, founding partner of Advantage, is unable to disclose what the company was sold for but says it will retain its identity and continue to be an aggregator and branded mortgage arranger for its panel lenders.
Advantage has received strong support from members of its lending panel, despite worries the takeover would cause lenders to withdraw business from the aggregator amid fears it would set up its own lending arm.
Colin Shave, chief executive officer at GE Money Home Lending, welcomes the sale. He says: “This deal is good news for consumers and intermediaries and comes as no surprise. GE Money Home Lending’s relationship with Advantage is based on the commitment we both have to providing value and service.
“To succeed in this competitive market will mean building long-term partnerships based on innovative products and service that delivers value to customers.”
Kensington Mortgages, which was added to Advantage’s branded lending panel just a few weeks ago, also supports the move.
Alison Hutchinson, managing director at Kensington, says: “As far as Kensington is concerned nothing has changed. Our relationship with Advantage is based on offering the best service for our customers. If Advantage brings out more products funded by Morgan Stanley we will look at putting them through our portfolio, creating a better service for our customers.”