It seems that while the network was sold in Febuary to Freedom Finance, there had also been a rival bid from the Scarborough.
A writ issued by the society's solicitors Addleshaw Goddard claims it spent Â£243,000 on external advisers and Â£102,000 internally as it prepared to buy the broker network.
Mortgage Next declined to comment following legal advice. And the Scarborough is remaining similarly tight-lipped, with a spokeswoman stating that it's the society's policy, “not to make any comment on any transaction that may or may not have happened.”
However one senior society executive told Sunday's Financial Mail: “One wonders quite how the society got so far and spent so much without realising the deal was flaky.”