The small mutual, which last year lent just over £100 million, currently receives around 80 per cent of its business from intermediaries. It is seeking to recruit around 50 intermediaries to MBSL and claims to have at least 20 brokers who have requested application forms, with five having committed to joining the new network.
The new network will not be charging fees for PI insurance or for compliance support.
Veronica Bailey, manager of MBSL, said: “We will offer our intermediaries a lender panel of between 25 and 30 lenders - these will be across the board, not just mutuals. We also intend to white-label a sourcing system for them.”
Bailey went on to say that the network had completed its Principal application with the FSA.
David Cowie, chief executive of Manchester Building Society, said: “With the introduction of MBSL our focus is to provide a service-oriented, one-stop shop solution which enables intermediaries to adapt to the regulatory environment smoothly, while removing much of the onerous FSA compliance.”
Rachel Blackmore, external affairs manager at The Building Societies Association (BSA), praised the ingenuity of MBSL saying: “This shows that building societies, and Manchester in particular, are being pro-active when it comes to responding to impending regulation.”
Commenting on the development Andrew Seymour, chairman of Optoma, said: “I think that it is enlightening that a building society is embracing the idea of creating a network. Bearing in mind how small they are, I would say they are ahead of their time."
