The company was valued at £22 million and Martin Maynard and Justine Tomlinson, joint owners and founders, will retain a 43.5 per cent shareholding in the company.
Rupert Webb, group chief executive and 40 per cent shareholder of Freedom Finance, said: “We had been talking to Mortgage Next since last summer though it all came to a head about a month ago.”
Webb went on to say that Freedom were also interested in other acquisitions as and when they were appropriate.
When questioned over why Freedom had chosen Mortgage Next over the other independent networks, he said: “While Mortgage Next is not an asset rich organisation, I believe its real value lies in the strength of the management team. That is what we bought into.”
Managing director of Mortgage Next Martin Maynard, said: “This deal gives us the solid financial backing we need to be able to fully exploit the many opportunities which will present themselves in the months and years to come.”
Stephen Atkins who joined Freedom from Mortgage Next only two months ago is to head up the compliance for the whole group.
Commenting on the development Richard Griffiths, managing director of Network Data, said: “This is a good move for Mortgage Next, though I would question the stated valuation of the company.”
Griffiths went on to say that Network Data would remain independent.
