Martin Maynard and Justine Tomlinson, founders and joint owners of Mortgage Next, have retained a 43.5 per cent shareholding and will continue to run the business and implement its plans to provide mortgage intermediaries with a comprehensive network solution after ‘M’ day on 31 October 2004. Rupert Webb, Founder and Group Chief Executive of Freedom Finance, and three other directors Tony Machin, Colin Snowdon and Mark Chadwick will all join the Mortgage Next board. Stephen Atkins, who recently joined Freedom Finance to develop a network proposition for the company, will become Group Compliance Director.
Martin Maynard, Mortgage Next’s Managing Director, said: “This deal is the final piece in our strategic jigsaw in the run-up to regulation. It 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. It will also give appointed representatives of the Mortgage Next Network, the reassurance that they belong to a financially robust organisation. We now have a strong management team, the support of a panel of leading UK lenders and solid financial backing – we are looking forward to M day with great enthusiasm!”
Freedom Finance, which is the UK’s largest loan broker processing approximately 40,000 new loan applications per month, is part owned (54%) by JZ International Ltd, the international arm of the US based Jordan Corporation. The Jordan Corporation owns businesses worldwide with a collective annual turnover of approximately $4billion.
Rupert Webb, Group Chief Executive and 40% shareholder of Freedom Finance, said: “This deal enables Freedom to accelerate its plans to become a network Principal. We believe that Mortgage Next’s infrastructure, mortgage expertise and well-respected intermediary brand, supported by Freedom Finance’s financial strength, management expertise and extensive resources, will make the business a potent force in the market. Our intention is to be ‘hands-off’ and let Martin and Justine carry on running the company as they have done so successfully to date.”
Mortgage Next is based in Caterham, Surrey, where it provides support to more than 6,000 intermediaries based throughout the UK. The Company's core activity is designing exclusive mortgage products which include self-certification of income, remortgages, buy to let, 100%, sub-prime and full status mortgages. Mortgage Next completed more than £2 billion of mortgage business during the last year. In comparative terms this would easily make it the equivalent of a top 10 UK building society.
Mortgage Next will provide mortgage brokers with a full range of support services when regulation is introduced in October. The services will include support for appointed representatives, for whom Mortgage Next will act as a network principal, and brokers electing to be directly authorised by the FSA, for whom Mortgage Next will provide a menu of support services.
