It was reported last week that Bradford & Bingley has been tipped as a possible bidder for Bristol & West’s building society operations.
But Rob Clifford, managing director of Mortgageforce, said that as B&B competes head on with the broker market, intermediaries could stop placing business with Bristol & West.
He said: “People forget that B&B is a broker so if it bought B&W this would create a channel conflict. Brokers may feel they would not want to place business with a competitor.”
But Clifford also said a takeover would create a major force in the marketplace. “Both companies have positive consumer brands. While B&W is strong in the South, B&B is very prominent in the North. In addition to its ownership of Mortgage Express, B&B would really capitalise on the broker market.”
Matt Grayson, public relations manager at BM Solutions, commented: “It is expected that consolidation will be taking place. B&W and B&W have similar sized businesses while B&B will be keen to retain its strong presence in the market.”
Both lenders declined to comment.
