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Brokers demand reassurance after Trigold buy out

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  • 04/01/2011
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Brokers demand reassurance after Trigold buy out
Brokers have asked for reassurance that prices will not change or technological advancements stalled, following Mortgage Brain’s acquisition of TrigoldCrystal on 20 December.

Neil Hoare, spokesperson for Pink Home Loans said: “One area of concern with this acquisition is the potential price rises. We would all hope that in these difficult times that we could be reassured by any merger that this will not be the case. I think that both Mortgage Brain and TrigoldCrystal should also provide assurance that its customers will be the top priority.”

Dev Malle, sales and marketing director of PTFS, had similar concerns on pricing and added: “Brokers will also be looking at whether there is a slow down in technological advancements of the sourcing systems. There also needs to be reassurance on this.”

However, Simon Maskell, technology director of housing at Legal & General, said he has already been reassured by Mortgage Brain and TrigoldCrystal that prices will not rise.

He said: “Having discussed this with both groups, we are happy with their commitment to continue running the two brands of mortgage sourcing systems, so users should not see any major changes to current systems over the short-term.

Maskell’s main concern over the longer term is how current integration into back office systems will continue to work.

He said: “If the new company decides to move to one sourcing system – then this is where the costs and potential regulatory risks would be.”

He also suggests that a merger will lead to new suppliers entering the market, which could provide interesting times for networks and advisers.

“This is good news for brokers, however, as we could see more innovative solutions at competitive prices.”

Mortgage Brain has said the two brands will remain separate but  streamlining of the back-end processes is due to start this year.

Mortgage Brain’s Mark Lofthouse will become the combined CEO of the new business, while TrygoldCrystal’s joint CEO Martin Colyer will initially join the board, alongside Jon Whitmore, Peter Birch and Patrick Shuker.

Mortgage Brain was unavailable for comment.

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