The proposition was originally launched to existing appointed
representatives in October and then made available to external applicants in November. So far 90% of MGM Assurance’s existing mortgage brokers have signed up, well in advance of the October 2004 deadline.
Says Stephen Maskens, manager of MGM Home Finance: “The response has been excellent thanks to the uncomplicated nature of the package that we announced. Mortgage brokers really appreciate the fees guarantee and the £1 million loyalty fund we have established.
“We put this together in consultation with our mortgage firms and used the capital backing of MGM Assurance to great advantage so it is no surprise that we have received hundreds of positive enquiries about joining.
“It is still a fact that most of our competitors remain cagey about their pricing making it difficult for a mortgage broker to calculate the true cost of membership. If providers are not prepared to guarantee their costs what does it say about their own belief in their offering?”
One of the strongest features of the MGM Home Finance contract is the ability to self- insure for PII which has meant lower pricing for all.
Stephen Maskens commented: “Our direct conversations with underwriting syndicates have led us to believe that PII rates are set to rise considerably in a post FSA regime, much in the same way that IFA cover has become prohibitive. I have seen huge excesses being quoted elsewhere which offer little protection to the broker.”
Anyone wanting details of the MGM Home Finance proposition should visit the website on www.mgmhomefinance.co.uk
