Sourcing system Mortgage Brain has denied starting a mortgage club in competition with its clients, amid confusion caused by a promotional letter it sent out to direct subscribers.
The letter, prominently headed as Mortgage Brain and sent from Claire Kennedy, its head of marketing, offers direct subscribers exclusive access to 1st:source mortgage club and packaging service. The letter gives no indication that it is not entirely a Mortgage Brain offer having no branding from another organisation.
Sally Laker, managing director of Mortgage Intelligence, commented: “I would be extremely cross if Mortgage Brain did start a club. We chose Mortgage Brain and Trigold to interact with our proposition because they are not running in competition with us.”
However, Kennedy said: “This is not a Mortgage Brain club or packager. 1st:source is available exclusively to our direct subscribers, but is nothing to do with us. It is run through Mortgage 2000.”
Sean Hornsby, sales and marketing director at Mortgage 2000, added: “This is all down to marketing. I do not believe the Mortgage 2000 brand would sell well on Mortgage Brain. Unfortunately because we are a competitor of Mortgage Brain in sourcing systems they would not let us write to their customers, for obvious reasons, so the agreement we came to was that they would write on our behalf. This is why the letter comes from them.
“This is a Mortgage 2000 club. If you look on Mortgage Brain you will find Paymentshield’s, Mortgage Intelligence’s and Mortgage Next’s clubs among others. All we have done is add Mortgage 2000 but we have decided to call it 1st:source on the Mortgage Brain system. The club is available on the Mortgage 2000 systems as Mortgage 2000.”
Laker added: “This letter has been sent to all and sundry, with Mortgage Brain plastered all over it. The letter is totally misleading, has sent out all the wrong signals and has got everybody up in arms.”
Hornsby said: “I can assure you that Mortgage Brain would not jeopardise their corporate relationships by starting their own club. We approached them to do that two years ago and Mortgage Brain refused on principle.”