View more on these topics

Exclusive: MPLC to go direct to consumer through mortgageforce JV

Mortgages PLC is to launch a joint venture with broker mortgageforce to offer sub-prime loans direct to the consumer.

Full details are due to be revealed next week but Mortgage Strategy understands that under the terms of the deal most of the 128 mortgageforce franchisees will market sub-prime loans exclusively from MPLC under a separate trading name, Spring Mortgages & Loans.

Although marketed under the Spring trading name this is the first time that mortgageforce will be heavily involved in the sub-prime market having previously focused on mainstream broking.

Mortgage Strategy exclusively revealed last September that MPLC was looking to launch a direct to consumer operation. At the time, the London City and Glasgow-based lender was denying it had appointed John Rice in August 2003 to oversee its development.

Rice, who went on to become the managing director of RAMP, was the former head of sales at retail sub-prime operation The Mortgage Lender, owned by rival lender Kensington Mortgage Company. His appointment at MPLC was terminated shortly afterwards and has nothing to do with the mortgageforce joint venture.

Mortgage Strategy also understands that mortgageforce will be controlling both the front and back end of the direct to consumer broker that will introduce solely to MPLC.

In a regulatory light, the operation will run similar to the way The Mortgage Lender and Kensington operate.

MPLC and mortgageforce, which have been working on the deal for months, have been seeking the services of at least one lead generation firm in a bid to get sales off the ground from day one.

Peter Beaumont, MPLC sales and marketing director, and Rob Clifford, managing director of mortgageforce, were both unavailable to comment.

Last September Beaumont told Mortgage Strategy: “There are three types of acquisition cost. Through a branch network is the most expensive bar none. Second is through intermediaries and the cheapest is direct to consumers through a central point – similar to centralised lenders.

“Along with the rest of our peer group we are looking at all the options that are available to us in a pre and post-regulatory environment. Any lender that says they are not is probably not telling the truth.”

Recommended

House prices rise 0.7% in March

House prices rose 0.7% in March, Hometrack&#39s monthly survey reveals. The survey shows average house prices now stand at £149,800 compared to £148,500 lastmonth. Hometrack has now upgraded its house price forecast to 8% from 4%. Strong price rises were spread across the whole country. All 52 county areas reported pricerises, the highest increases being […]

House prices rise 2.2% in March, says Halifax index

Halifax&#39s latest house price index shows house prices increased by 2.2% in March, taking UK house prices through the £150,000 barrier with an average price of £151,467. The average price in Yorkshire and the Humber breached the £100,000 mark during the first quarter, making it the last English region to do so. Halifax says average […]

All your network questions answered by the industry&#39s leading experts

If I join a network, do I still have to pay for my own PI insurance? Andy Young is head of mortgage services at SesameYes, although the network is likely to have in place special arrangements to ensure its professional indemnity insurance cover is highly competitive. Chris May is director at Mortgage TimesNetwork contracts vary […]

The Mortgage Mole

Boot boysThose Mortgage Express lads don&#39t half whip up a storm – especially on the football pitch. Mole hears that confidence within MEX&#39s inhouse squad is now so high that they&#39ve challenged any lender or broker team who fancy their chances after smashing a woeful side from SPML 3-0. MEX&#39s finest dominated the match and […]

Seeking quality in uncertain markets

By Ewan McAlpine, Senior Client Portfolio Manager In uncertain times, investors naturally seek safety. But in fixed income markets, what does that really mean? Ewan McAlpine outlines the approach RLAM’s Fixed Income Team will be adopting across its credit funds in response to potentially volatile markets this year. Click here for full article

Newsletter

News and expert analysis straight to your inbox

Sign up