MBSL launched its proposition in April of last year in a bid to secure its distribution. The small mutual, which lent just over £100 million in 2003/04, receives around 80 per cent of its mortgage business via intermediaries.
Neil Armitage, general manager of MBSL, said the network currently had 36 trading AR firms with seven applications in the pipeline. When it was launched MBSL said it had a target of recruiting 50 AR firms. Armitage said he was looking to acquire a further 50 to 70 AR firms.
“There are a number of ways we could acquire them, one way would be to buy a another business outright and allow it to run alongside ours for a while before merging the two.”
Steven Moorley, development director at Blue Sky Mortgages, said the news showed some of the smaller networks were already beginning to struggle. “If I were them I would go for growth rather than choosing now to sell. The price for small networks can’t be great in the current climate and it is still early doors ”
Richard Griffiths, managing director of Network Data Ltd, commented: “Well it is Manchester Building Society, so they have got deep enough pockets to go out and buy another small network. Though I would question the motives of a lender wanting to construct a network. Will their advisers be able to remain impartial?”
