Gardner says that the pair’s self-financed venture, Obligo.co.uk – a consumer mortgage advice website and associated mortgage adviser firm called MortgageExpert from Obligo - is a “game changer” which will leave brokers who continue to view mortgage advice as transactional “in its wake”.
The website offers consumers the tools to gather detailed and accurate information about their existing mortgage and potential mortgage options for free. Registered users will have access to a suite of mortgage calculators and an automated valuation model using the same technology as lenders.
The site also provides users with regular updates, allows them to track their mortgage and equity position and offers a real-time updates on new products suited to their circumstances.
For a £495 fee registered users can upgrade to the premium service and speak to a mortgage adviser who will deal with a mortgage application beginning to end and track the process with any lender.
Gardiner told Mortgage Introducer: “This model is giving people the tools to gather much more detailed information themselves. I think this could potentially remove part of the traditional mortgage broker homeground because consumers are given greater access to accurate information.
“But with my broker hat on I think most advisers would much rather speak to a consumer who understands what they want. A well informed customer is a better start point for an adviser to give better advice.”
Bohringer and Gardner formerly ran packager ICMG, which they sold to Bear Stearns before the credit crunch hit. Obligo is the latest brainchild of the pair, who have decided that the timing is now right to re-enter the mortgage market.
Gardner said: “We’ve had a lot of experience in the mortgage business over the years and the recession has totally changed the whole market dynamic but out of that adversity has come an opportunity.”
He said Obligo is an attempt to create a post-recession mortgage intermediary business that is fit for the new market.
“We looked at the shape of brokers’ businesses pre-recession and now,” said Gardiner. “The vast majority are very much transactional based rather than getting involved earlier in the process.”
The firm is based in Southend-on-Sea and currently employs 12 people including Bohringer and Gardner who head up sales and marketing. Ross Boyd and Bill Connell head the IT function in the business and Dominic Payne is responsible for compliance.
Obligo also plans to embed mortgage calculators on affiliated websites including theadvisory.co.uk and tepalo.com, as well as paying commissions to estate agents, builders, surveyors or other interested parties who can refer customers to MortgageExpert from Obligo.
