Top London brokerages Hamptons International Mortgages and Square Mile Mortgage Finance have formed a strategic alliance that will result in an aggregated annual loan delivery of over £1bn and annual revenues of £5m.
Both brokerages service the top end of the market and they have a combined monthly distribution of £80m. Pundits say this formal strategic alliance will bring wholesale benefits to both businesses in the run-up to N4.
The deal brings together 30 consultants but does not involve any change in ownership or a financial consideration. Mortgage Strategy understands that the deal has been designed to bring greater productivity and cost savings as a result of pooling loan quotas and sharing common trading platforms and compliance overheads.
Kevin Duffy, managing director of Hamptons International, says: “This gives our joint enterprise the ability to broker £1bn worth of finance a year. There are synergies across the two companies and we want to secure stronger products and terms from our lender partners as a result of our alliance. The aim is to create a company which is well placed in 2004 to achieve its regulation-related objectives and to continue to make inroads into the market shares of both Charcol and Savills Private Finance.”
Mark Charlesworth, managing director of The Mortgage Operation and chairman of The Mortgage Distributors Co-operative, says: “Size matters and will become increasingly important as regulation approaches.”