View more on these topics

Contract hitch for Famous Five and Fab Four

The Famous Five who quit HBOS earlier this month will not be allowed to get involved in the operational set-up of their new lender until June next year at the earliest.

Michael Bolton, Alan Cleary, John Nixon, Rob Williams and Mark Smith walked out from the lending giant earlier this month to join The Oakwood Group, a London-based private equity firm fronted by business guru Mike Culhane, looking to launch a lender in 2006.

All five are on gardening leave and, although their three-month notice period expires on January 3 2006, non-compete covenants in their HBOS contracts mean they will not be allowed to get involved in creating their new lender, or indeed have any operational input, until June 3 2006 at the earliest.

The nine-month exclusion will scupper any plans the five had to launch the new lender in the first half of 2006 and could make August or September target months for a soft launch.

All five are believed to have consulted The Oakwood Group’s lawyers regarding the non-compete clause but have been advised it is legally watertight and not to risk breaching the terms and conditions of their HBOS contracts.

Non-compete clauses are not uncommon among employees of large corporate institutions and the Fab Four that quit HBOS subsidiary The Mortgage Business last month to join Deutsche Bank will be bound by the same ties. That means Bill Dudgeon, Mark Bergin, David Parry and Paul Graham will be locked out of any direct input into the creation of Deutsche’s new entity until May 2006, highlighting a July and August launch window.

Both new lenders are believed to be launching into specialist markets and competition is likely to be fierce.

Recommended

Owners warm to lifetime option

Research from Prudential reveals 44% of home owners over 55 would consider a lifetime mortgage. This compares with just 18% of the same social group in 2004 and 9% in 2003. When the question is opened up to all age groups, 48% are interested in lifetime mortgages. The fact lifetime mortgages are now regulated makes […]

Mortgage Options extends franchise package

Mortgage Options, the Independent mortgage broker, is extending its franchise package for brokers thinking of going it alone and setting up their own mortgage shop.The mortgage shop franchise package provides brokers with the opportunity to have total day to day responsibility while benefiting from working within a proven business environment, with all the cost savings […]

Amber appoints Davey as product development consultant

Amber Homeloans has appointed Craig Davey as product development consultant.This is a new role, created within the sales and marketing team, which will help Amber to continue to develop innovative products meeting the demands of the intermediary market.Davey brings with him six years of mortgage industry experience gained within the Skipton Group. He has focused […]

Protecting your home from the winter elements

The Royal Institution of Chartered Surveyors is advising people to prepare their homes for winter and stop the predicted harsh weather from taking its toll on their property, heating and maintenance bills. RICS say that properties are vulnerable to attack both from the outside elements and the moist, warm conditions that build-up inside during the […]

Budget summary – March 2016

This week’s Budget looked as if it would be a difficult one for the Chancellor, with disappointing economic numbers and the need to avoid ruffling feathers ahead of June’s in/out referendum. Nevertheless, Mr Osborne did spring a few surprises, including some tax reductions. So how does this budget affect you? If you are – or […]

Newsletter

News and expert analysis straight to your inbox

Sign up