Sub-prime packager, Advantage, has thrown its own network offering into the ring, looking to attract 50 members in the first year.
The network will target those with a conversion rate of over 90%, and said it will remove those packagers who fail to meet Advantage’s standards.
In the face of lenders culling the number of packagers they use, the network will give smaller operations access to the agency agreements it has in place, as well as help to develop their own operation.
Peter Bass, head of sales at Advantage, said: ‘For a packager to survive and prosper in the future, we recognise it will need a wider range of products and support than exists in the market today. Our network will encompass mortgage processing, business development, IT, marketing, compliance and regulation ‘ in effect, future proofing their business.’
Through its branded lender, Advantage Home Loans, members of the network will have access to products from GMAC RFC, Platform, Mortgages plc and First National. Negotiations are ongoing with Preferred, SPML, Kensington and The Mortgage Business to extend the products available.
Keith Dearling, director of Advantage, acknowledged there were worries that the number of brokers introducing business to its packager members could fall, disrupting their volumes. To counter this, he added: ‘Advantage will work with its network packagers to develop direct channels including the internet and telephone, as well as developing advertising techniques.’