Franchise chain Mortgage Advice Bureau is to part company with its current packager Custom Made Mortgages and take its business to Direct Financial Services.
Peter Brodnicki, chief executive of MAB, says the move is amicable and the result of the changing directions of the companies.
Custom Made Mortgages was formed in 1996 as a subsidiary of MAB, packaging for the company's franchisees. Then three years ago it started developing its business as a separate entity dealing with a range of brokers.
Brodnicki says: “It is nothing to do with the quality of the packaging – we were happy with that – it is just a case of a change in strategic direction.”
Custom Made Mortgages provides packaging services for a number of networks and clubs such as L&G, Sesame and Friends Provident.
David Matthews-Hilliard, senior partner at Custom Made Mortgages, says: “The companies are looking for different things. As MAB wasn't a significant part of Custom's food chain it was not possible to see how it could service all of MAB's needs.”
MAB has also set up a network targeting smaller L&G intermediary partners looking to become part of a bigger business under FSA regulation.
MAB is currently L&G's top producing mortgage-based intermediary and is set to become one of the largest members of its principal network offering, the L&G Partnership. Smaller intermediaries who join the MAB network will be able to access services like compliance from L&G and business development from MAB.
L&G director of housing marketing Stephen Smith tells Mortgage Strategy: “For a number of our smaller business partners it may prove a better route to join with a bigger firm like MAB than become part of the L&G network directly.”