The Norwich Union Mortgage Club will be integrated under Bankhall's Premier brand over the next 12 months.
As Mortgage Strategy exclusively revealed yesterday the club has been purchased by Bankhall for an undisclosed sum, joining Premier Mortgage Service, purchased from Prudential.
Shaun Godfrey, Bankhall group sales director, says both the NU Mortgage Club and Bankhall's mortgage club, Point One, will now be merged under the Premier Mortgage Services brand.
Norwich Union's decision to sell its club is thought to have arisen after directors decided the risk of taking on principal status was too great for the UK's largest insurer to expose itself to.
That, and a desire not to want to operate in competition with its main strategic partners such as Bankhall, are believed to be the key reasons for Norwich Union to sell its mortgage club.
Jon Round, head of mortgage development at Norwich Union, has been tasked with ensuring a smooth integration between the club and Bankhall. After this process is complete he will operate as the link man between the two organisations.
John Whitehead, technical manager of mortgage development at NUMC, and the rest of the club's staff will all transfer to Bankhall. Mortgage Strategy understands that as yet no redundancies are planned.
Whitehead says: “This gives us a scale of operation that is far larger than anything that the three individual constituants could have come up with. The next part is how we debate the different businesses and developing the best propositions that we can for the market.”
Shaun Godfrey, group sales director at Bankhall, adds: “Bankhall has a clear strategy of creating a one-stop shop to get our members life insurance, mortgages and general insurance sales fully backed up with market-leading compliance services all in one place.
“In the cold light of the day, Bankhall believes it now has an unbeatable offering for the mortgage intermediary.
“Regulation will create lots of opportunities. Currently we don't have any further acquisitions planned but who knows what further changes regulation will bring.”