Simret Samra (SS): Why did you decide to acquire the FYB Network?
Sally Laker (SL): We thought FYB made a good fit for our network for a number of reasons. First, it’s a good quality network. Secondly, a lot of our mortgage brokers in both the Mortgage Intelligence and Mortgage Next businesses are primarily more southern based, so FYB’s location in Derby is good for us. Thirdly, the FYB Network is a people-based network which is an ethos that we have. They do a substantial amount of protection and mortgage business which will enable us to continue growing those areas in our business.
It is very much about quality in today’s climate so that aspect is equally important to us.
(SS) Will brokers have access to a greater variety of products as a result of this acquisition?
(SL): Yes, I think they will. From our point of view we want to make sure it’s business as usual for the guys at FYB but certainly we have a good range of exclusive products on the mortgage side which will be coming soon.
We offer a range of benefits as part of the network and we’re looking to bring those benefits across to FYB. At the moment, we want to make sure that there is nothing that will hold up their business.
(SS): Are there any further acquisitions in the pipeline?
(SL): We’re always looking for any opportunity to grow the business. However, it is early days yet as we have just acquired FYB.
(SS): How has Mortgage Intelligence performed over the last 12 months?
(SL): We’re bang on budget given market conditions. I’m not going to lie and say it’s been the most buoyant year, but given where the market is at the moment we’ve done what we expected to do, which I’m pleased with.
(SS): With the next Mortgage Market Review announcement from the FSA due shortly, what will you be examining in close detail?
(SL): From what we saw a few months ago, the emphasis is certainly on the lender affordability piece.
Certainly lenders are very clear now what’s required from the broker to do business with them. I think the way that lenders now want to work to improve quality and to lead what they need to achieve from the affordability point of view from the FSA, it has almost created the perfect way in which business is submitted to them from the broker.
The message we’re passing to brokers is if they want to have a good relationship with the lender and continue to do business with them, don’t just try to grab a rate. You can only take the rate if you have got all the documentation, which must be complete.
This message is slowly getting out there and I think lenders will benefit from a much more cost-efficient process, which at the same time delivers the better quality they want.
Brokers are very much aware of what they have to do with their client before anything gets sent to the lender. I think the quality piece is the single biggest change.
