Quality will continue to be a key differentiator for mortgage lenders, but the property firm’s boss said “at some point we will see proc fees paid on a quality – volume basis.”
Outlining the with group’s strategic plans to the network’s award winners, he said LSL’s mortgage distribution was currently the third/fourth biggest in the UK and lack of scale was one of the reasons other networks failed to make money.
“We looked at so many networks between 2004-8 and the biggest premiums were being paid for loss-making distribution businesses. That hasn’t changed much,” Embley added (pictured).
First Complete’s growth continues with the recruitment of 50 new AR firms in the last six months and another 100 going through the pipeline and LSL is still very much on the hunt for “opportunistic acquisitions,” said Embley.
“If you say that, you could end up overpaying, but we look very carefully at all our potential assets,” he added. Alongside LSL’s multi-million pound income the group has a £75m acquisition facility sitting with the banks, giving the firm acquisition “firepower,” he said.
With LSL’s results out on 28 February, Embley said First Complete moved into profit for the first time this year, adding he was “hugely optimistic” about First Complete and LSL’s joint future.
LSL’s mortgage and protection distributors include First Complete, Pink Home Loans and Linear Financial Services, alongside mortgage club, The Mortgage Alliance, its latest acquisition.