MGM Home Finance says it has seen evidence that the introduction of regulation need not be as negative as many have portrayed.
Early forums with MGM Assurance's existing mortgage brokers indicated that most were worried that regulation would increase workloads and ultimately decrease earnings. It was clear that mortgage firms were looking for support that would put in place all the necessary requirements to meet regulation but leave them to get on with business as usual.
MGM Home Finance opened its proposition in January of this year and already has over 200 members signed up using the sales process it implemented under a sales friendly T & C scheme.
The results to date have been extremely encouraging with benefits for all involved.
Stephen Maskens, manager of Home Finance, says: "The results to date are far ahead of MGM's own expectations. The company has already seen its mortgage firms enthusiastically taking to the integrated mortgage and life software and as a result we have seen record life sales in March.
"In addition, the level of life business being transacted on line has increased by 100%. This means that broker firms are actually earning more whilst reducing the paper they have to complete.
"After making individual decisions that direct regulation was not the right option for them, new members have quickly seen the benefits of being well supported by a Mortgage Principal. In addition customers get access to every available lender and more of them have taken life cover through the simplified sales process. This is exactly the way MGM wanted the model to work."
The early sign-ups for Home Finance reflect the availability of founder member benefits until the end of April giving access to a 'no fees' guarantee and a £1m loyalty fund. Full details of the offering are available at www.mgmhomefinance.co.uk.