Fintel invests £1.5m in Mortgage Brain and makes distribution deal

Fintel invests £1.5m in Mortgage Brain and makes distribution deal

Fintel will get a 5.8% stake based on the current share capital of Mortgage Brain.

The investment will allow Mortgage Brain to “continue investment in its technology platform to better serve lenders and intermediaries”.

Mortgage Brain’s sourcing, customer relationship management (CRM) and submission software will be available to Fintel’s thousands of advisers through its Simplybiz Mortgages subsidiary.

This will help them “efficiently source and place the best mortgage products for their clients”.

Simplybiz Mortgages will offer Mortgage Brain’s full range of products, which includes its three sourcing engines, along with to-be-launched CRM Brain and Submissions Brain.

Neil Stevens, joint CEO of Fintel, said: “Our new distribution agreement with Mortgage Brain will enable our members to access Mortgage Brain’s leading mortgage sourcing and submission software as part of our integrated platform. ​

“Our investment in Mortgage Brain will provide a significant cash injection to continue Mortgage Brain’s product transformation, bringing its solutions to the cutting edge of the industry and providing even greater efficiency to its customers, including Fintel’s members.”​

Zahid Bilgrami, CEO of Mortgage Brain, said:​ “We’re delighted to partner with Fintel and bring our services to an even wider audience, driving better outcomes for advisers’ clients. Fintel’s investment will support us to achieve our ambitious transformation plans for the business and our products.”

Fintel is the parent company of Simplybiz and Defaqto. It has three core divisions: intermediary services division, distribution channels division, and fintech and research division.

Fintel’s intermediary services division reported a gross profit of £10.9m for 2023, a rise from £9.5m in the prior year.

Legal and General Mortgage Services revamps distribution team and hires Cunnington

Legal and General Mortgage Services revamps distribution team and hires Cunnington

The firm said that it had grown its distribution team, headed by Clare Beardmore (pictured) – Legal and General Mortgage Services’ director of distribution and mortgage club – from 18 to 32 people.

It said that this showed its “ongoing commitment to providing brokers and lenders with holistic support, bolstered by a broad UK lender panel and a range of leading tech and surveying services”.

Cunnington will work alongside Paula Matthews, who will build on her prior experience as strategic relationships director at Legal and General Surveying Services.

They will both lead the strategic accounts team, overseeing the sales and distribution strategy for a select group of lenders within the distribution team.

Cunnington was most recently chief operating officer at LDN Finance, which he joined in 2022.

Before that, he was at Alexander Hall for nearly 15 years, most recently as director of relationships and new homes, and associate director prior to that.

Alison Williams also joins the team as head of professional relationship, having been head of governance at Legal and General Surveying Services.

 

Distribution team revamp

Legal and General Mortgage Services said it had “bolstered support for brokers” within the distribution team. The team includes Zara Bray, head of strategic accounts; Louise Turton, head of business development; Michelle Westley, head of propositions; and Victoria Williams, mortgage club lead, who will all report directly to Clare Beardmore.

The team will be a “strategic touchpoint” for brokers who want to improve their businesses by looking for new revenue streams and invest in “continuous professional development”.

With the bigger team, the company will be able to “relationship manage a larger number of firms than ever before, providing them with agile broker support in a dynamic market”.

 

‘Newly expanded team’ will help to still ‘deliver an industry-leading experience’

Beardmore said: “We are delighted to welcome Greg to Legal and General Mortgage Services. His wide-ranging skillset and proven track record will undoubtedly contribute to our ongoing success.

“As Legal and General Mortgage Services continues to level up its support for brokers and lenders, our newly expanded team will help us continue to deliver an industry-leading experience for our partners. Together, we look forward to achieving new milestones for our valued partners and clients.”

Cunnington said: “I am thrilled to be joining the Legal and General Mortgage Services distribution team. The opportunity to contribute to such a renowned organisation is incredibly exciting. I look forward to hitting the ground running and collaborating with my new colleagues, leveraging our collective expertise to drive impactful results that not only meet but exceed expectations.”

 

UTB mortgage loan book passes £1bn for first time

UTB mortgage loan book passes £1bn for first time

The specialist lender said it also expected its mortgages division to report a 24 per cent growth in new business this year. 

UTB launched in 2016 with a range of second charge mortgages and in 2020, expanded its offering to first charge products for purchase, remortgage and unencumbered properties. It later launched a specialist buy-to-let range in 2022. 

The lender appointed Caroline Mirakian as sales and marketing director – mortgages earlier this year, with an aim to build on its distribution focusing on clubs, networks and packagers. It is through its partnerships with intermediaries that the lender expects to see a growth in business. 

Buster Tolfree (pictured), director of mortgages at United Trust Bank, said: “This is a momentous milestone for the bank and a fantastic achievement for the mortgage team who, in my view, are one of the best in the industry. 

“We couldn’t have achieved £1bn without the support of our amazing broker partners. Many of them have helped us to develop our proposition along the way, testing new tech and processes and giving honest feedback. This collaboration and our commitment to continually improving mortgage journeys for brokers and customers have gained us some very good and loyal friends.”  

Tolfree added: “We have built our reputation on being a dependable specialist mortgage lender, that is happy to take a view on cases which fall outside of norm, and who is committed to supporting brokers through whatever the market and economy can throw at us. Although the outlook may be uncertain, we’re here for the long term and excited about what the future holds.” 

More2Life expands distribution for flexi-house equity release plan

More2Life expands distribution for flexi-house equity release plan

The plan has two options, flexi-choice for properties up to £2m and flexi-choice premier for properties over £2m.

Customers can get a range of benefits including a service promise guaranteeing a 10-day application to offer process. If the lender fails to meet this deadline then the customer receives £500.

If the completion date is moved by More2Life then the client receives an additional payment of £200.

Loan to values (LTV) available range between six per cent and 46 per cent with loan sizes range from £10,000 up to £1m, or £2m for the premier option.

The deals also come with free Energy Performance Certificates (EPC) on completion and fixed early repayment charges are also in place.

There is a three-year compassion clause and the ability to make ad hoc payments of up to 10 per cent of the total cash advanced each year.

Ben Waugh, managing director at More2Life, said: “With the recent figures from the Equity Release Council highlighting that we are starting to see green shoots in the market, More2Life is keen to support advisers as they speak to customers by making this market-leading plan more readily available.

“Not only are the rates the best on the market but flexi-choice also offers a service promise, free energy performance certificates and fixed ERCs as well. This is a particularly compelling offering when rising rates mean that customers are scrutinising product flexibilities more than ever.

“We look forward to working closely with a wider range of advisers to support their clients’ growing needs.”

Sally Wright to depart Hampshire Trust Bank

Sally Wright to depart Hampshire Trust Bank

In a post on LinkedIn, Wright said that as head of intermediary distribution she “had the opportunity to work alongside our corporate partners, widening the bank’s distribution footprint and deepening relationships with larger distributors across the specialist finance sector”.

She continued: “I embraced that opportunity wholeheartedly, as I am incredibly passionate about this area of the market and the huge importance it plays. I would like to thank all of my corporate contacts, many of whom I call friends, for all the support you have given me throughout my time at HTB.”

Wright continued that she was “very grateful for the skills and experience I have gained during my time with HTB and wish them every success for the future”.

She confirmed she is on gardening leave and would be studying for another mortgage industry qualification.

Wright joined the firm in 2021 as head of propositions for specialist mortgages before taking on the role of intermediary distribution head in 2022.

Prior to HTB, Wright worked at Vida Homeloans for around five years, initially joining as corporate sales manager before taking on the head of field sales role.

Before that she worked at One Savings Bank for over two years as national account manager and has also held roles at Siemens, The Carbon Trust and PruProtect.

A spokesperson from HTB said: “Sally Wright has left the business to pursue new opportunities. We’d like to thank her for her hard work and efforts during her time at HTB and wish her all the best in her future career.”

Mortgage broker firm TBMC to close operations

Mortgage broker firm TBMC to close operations

All applications in the pipeline will be processed through the “normal channels” in order to ensure a “seamless transition”.

TBMC was founded in 1989 and specialised in buy-to-let and commercial mortgages. The firm was bought by Paragon in 2007.

In a statement, Paragon said the closure of TBMC came after a “comprehensive review” by the parent company and was “in line with Paragon’s strategy of prioritising investment in its core operations”.

It continued that the closure of the firm would impact 17 roles, but have “no impact on the performance of the wider group” as the broker did not make a “material contribution” to the parent company’s profits.

Paragon continued that the closure would also not have an impact on the level of buy-to-let business the lender receives.

The lender said since the broker was acquired in 2007, its mortgage intermediary distribution model had undergone “significant evolution and expansion”, and so TBMC was “no longer considered to be strategically core to the company’s distribution network”.

Richard Rowntree, Paragon Bank’s managing director of mortgages, said: “We appreciate this is difficult news for our colleagues at TBMC and I thank Jane Simpson and her team for the service they have given to the company over the years.”

He added: “Paragon’s mortgage distribution model has evolved and broadened significantly since TBMC was acquired in 2007 and, as such, TBMC is today considered a non-core operation.

“As one of the leading buy-to-let lenders in the UK, our strategy remains focussed on growing lending in specialist segments of the market, particularly in areas where larger banks fail to adequately serve customers.”

The Cumberland appoints Seaton intermediary boss in resi distribution drive

The Cumberland appoints Seaton intermediary boss in resi distribution drive

Grant Seaton, previously senior commercial manager at The Cumberland, will lead the team on its specialism, lending to the hospitality sector, having provided holiday let mortgages for over 10 years.

The mutual has had residential mortgage relationships with select large intermediary firms for a similar number of years but in 2021 decided to develop its intermediary team further to expand its residential offering.

Seaton is charged with building out mortgage channel support to residential mortgage advisers.

Commercial management background

Seaton has worked at The Cumberland for more than 25 years, previously as senior commercial manager for England and Wales, where he oversaw the growth of intermediary lending to the hospitality sector in those regions.

The Cumberland said its ‘Kinder Banking’ purpose will be reflected by the intermediary team who are committed to providing a relationship-managed approach to advisers with a strong support framework for onboarded firms.

Seaton said: “It is an exciting time for The Cumberland as we ramp up our efforts to deliver a quality service to our intermediary clients whilst providing working solutions for the end customer.

“A key aspect of The Cumberland’s ambitions is to expand and modernise our services. The development of the intermediary team is a prime example of this. Not only does it see us expand our offering, but it will also serve as another vessel for us to apply the values which make The Cumberland a truly unique building society.”

 

TMA Club brings Quantum Mortgages on board its lender panel

TMA Club brings Quantum Mortgages on board its lender panel

Directly authorised brokers of the mortgage club can access the lender’s range of buy-to-let products, which include deals on single units, multi-unit, houses in multiple occupation, expat and foreign nationals and limited company special purpose vehicle.

The lender said that it places an “emphasis on the ability to listen and understand individual circumstances in order to meet the needs of experienced and professional landlords”.

It continued that underwriters make all the lending decisions, rather than depending solely on credit scoring tools, which allowed for a “personalised outcome” for the borrower.

Lisa Martin, development director at TMA Club, said: “As buy-to-let investors face a variety of challenges, including changes in taxation and regulation, a human approach to lending and advice will go a long way to providing peace of mind to new and existing landlords.

“We’re pleased to be partnering with Quantum Mortgages, whose unique approach and broad product range will enhance TMA member brokers’ abilities to support owners in this specialist sector.”

Spencer Gale, director of distribution and marketing at Quantum Mortgages, added: “With such close links to its lenders and a strong membership, TMA Club understand the importance of a personal touch when it comes to the advice industry, which is increasingly important given the macroeconomic challenges facing the mortgage market.

“We’re pleased to be working with TMA and are confident that our partnership will bring benefits to both brokers and borrowers alike.”

BSLS2023: FCA is ‘less worried’ about mortgage sector on Consumer Duty

BSLS2023: FCA is ‘less worried’ about mortgage sector on Consumer Duty

Speaking at The British Specialist Lending Senate, Association of Mortgage Intermediaries’ chief executive Robert Sinclair (pictured) explained that the regulator recognised that the “individual consumer journey” predominantly goes through sourcing, so a fact find is done, details are then keyed into the system, which then returns answers.

The broker then uses those answers along with “hard and soft facts to say to the customer, ‘that’s the most suitable product for you at the cheapest price we can get it for you’”.

Sinclair said: “The command lines are short until we get to the specialist sector where there might be a packager in the process or there might be a mortgage club in the way.

“The biggest risk that sits in that is that the club negotiates the price, such as the proc fee, and are they inside the circle when it comes to Consumer Duty? It’s a debate that is still alive, I think in terms of how that operates.”

He continued that the regulator not being as concerned about the mortgage sector “doesn’t mean we don’t have to do it, doesn’t mean we can’t be better, doesn’t mean that there isn’t a lot to be done, but you’re not going to be the prime target when it comes to this stuff”.

The FCA came out earlier this month to say that some mortgage intermediary firms were “over-confident” about their Consumer Duty policy and said some were approaching the regulation requirements “superficially”.

 

Lender fee structures could come under scrutiny

One area that could come under scrutiny is lender fee structures, especially if a lender does more than one area of business such as residential, second charge and lifetime mortgages.

Sinclair said there would be a “challenge” for a lender who operates in multiple lending areas in how the company “justify the fair value for the amount of work that goes into each by way of fact find, work completion and all the rest of it to say that you’re delivering fair value against the fee structure”.

Sinclair noted that some may segment the business mix into separate legal entities, but still operate under one regulatory regime, but he added that ‘he was not sure the regulator would buy that’.

Another option might be to segment people into different channels and explain that the business only works in that one area, however your regulated permissions may note that the business covers all three.

“Not sure how to get away with that in the fullness of time,” Sinclair added.

“When the regulator says they’re not worried about this market, they mean they’re not worried about the prime residential market.”

He said that the regulator was looking at the lifetime market at the moment, adding that: “I fear that what they’re finding this time is worse than the findings they made two years ago”.

 

Price and volume ‘most complex areas’

Sinclair said that within Consumer Duty, which encompasses the whole supply chain of financial services, price and volume are the “most complex areas”.

He explained: “In an open market and one as highly competitive as mortgages, if you’re not the price setter, you’re a price follower.

“The regulator gets that, because…normally there is only one price setter, but the reality is that there is a price setter that demands that loan to value (LTV) or at that income point they set the price everyone else is following.”

Sinclair said that that was the “reality of the market we operate in” but “defining that and thinking it through is really important”.

He added that the challenge of Consumer Duty was evidencing that you were doing it, noting that “it is not about anybody saying you’re doing it wrong”.

“It’s the footsteps in the sand that give the measures,” Sinclair continued.

“It starts with understanding your proposition and your strategy and whether you’re a lender or a broker, the fundamental here is you set out in words of one syllable who you are here to serve and why and who you do not want to serve.”

“Consumer Duty is about a lender defining what they do, how they do it and what their products are, and distributors defining what they do, how they do it, and therefore what they do.”

Paragon hires Sedgwick as mortgages commercial director

Paragon hires Sedgwick as mortgages commercial director

In the new role, Sedgwick will oversee the “strategic development” of the lender’s buy-to-let product proposition, which includes pricing and distribution.

She will also focus on product innovation for professional landlord customers and increase the speed of new products to market, as well as the green agenda for new business and existing properties.

She will join the firm on 3 April and report to Paragon’s managing director of mortgages Richard Rowntree. Sedgwick will also be part of the division’s leadership team.

Sedgwick was most recently at Hampshire Trust Bank, joining the firm in October 2021 as deputy managing director for specialist mortgages and was promoted to managing director for specialist mortgages in January.

In November, HTB appointed Chris Daly as managing director for specialist mortgages while Sedgwick took on the role of managing director as part of the commercial leadership team.

Sedgwick has worked in financial services for over 30 years, having held roles at Bradford and Bingley, Vida and Leeds Building Society.

Rowntree said: “Louisa brings a wealth of experience, which complements the skills and knowledge we already have in our team, to help us continue to drive the business forward.

“This is an exciting time for the buy-to-let business given the growth and pace of change in our market, and this new role will help ensure we are developing the right products for intermediaries and professional landlords, in line with our strategy and vision.”

 

‘Need to expand PRS more pressing than ever’

Sedgwick added: “I am hugely excited to get stuck into this role. Paragon has a fantastic reputation in the market, its ambitions and culture match my own and I’ve been impressed with Richard’s vision for the buy-to-let business.

“I want to support the business to achieve its strategic objectives and propel its growth through delivering compelling products for our landlord customers.”

She continued: “The need to expand the UK’s private rented sector is more pressing than ever before and professional landlords will be driving the growth. The market also needs to address the energy efficiency improvement of stock and I am looking forward to finding solutions to help landlords achieve that.”