The new company, which will trade as Cobalt Capital has a projected annual mortgage lending in excess of £1billion.
The merger – which will be one of equals – is seen by the firms as a logical step given the strong similarities between the two companies, both of which:
- Generate the majority of their business from professional introducers, particularly leading estate agents, solicitors and accountancy firms
- Value their independence from corporate shareholders and have the same philosophy and vision
- Provide a highly bespoke service, founded on considerable technical expertise and experience, transparency, comprehensive product knowledge and exceptional relationships with lenders
- Typically deal with high loan levels, often many times the average, for high net worth clients
- Cover similar product areas, including buy to let, residential and commercial loans, offshore mortgages and short lease finance
- Share similar backgrounds: three of the two companies’ four directors gained much of their experience at John Charcol in the nineties
Chelsea Mortgage Management Director, Richard Taylor, commented: “The merger is set to be an exciting move for both companies and, together, we are keen to make significant inroads into the London mortgage market and build on the excellent service levels we already offer individually. We have decided to operate under the Cobalt brand because we feel it has an enviable reputation in the industry, is well-recognised and is renowned for its considerable volumes of business. However, we won’t be resting on our laurels: to further strengthen the profile and brand awareness of the new company, we will be investing heavily in marketing, advertising and PR.”
Julian Ingall, Director, Cobalt Capital, added: “We are delighted to be joining forces with Chelsea Mortgage Management, which we consider a natural step forward, and are confident that the whole will be far bigger than the sum of the parts. There’s a widely held belief in our sector that small is beautiful, but we don’t believe this. Our view is that the bigger you are, the more buying power you have and the better relationships you can establish with the lenders, which translates into improved service for your clients. We intend to grow the company, make it a place that people want to work, and ensure it goes from strength to strength.”
The new company – which will have offices in Knightsbridge and Bristol – will set out on a major recruitment drive, despite the uncertain environment. With a proposed group performance-related bonus structure, and exciting self-employed packages, it is confident it will attract high quality, experienced brokers.
