However, many of the larger networks admitted they had been rebuffed in their attempts to buy-out smaller networks, with Home of Choice the only one to confirm an announcement was on the cards.
Richard Coulsen, chief executive at Home of Choice, said: “We are in constant discussions with other businesses about doing stuff together, both large and small. There will be two announcements from us in 2007 where we will be acquiring or tying-up with other businesses.”
Meanwhile, Richard Griffiths, managing director at Network Data, commented: “Over Christmas we were talking to smaller networks and offering to buy their ARs. They said they were making a small profit and that they were happy with doing that.”
Despite constant predictions of consolidation in the AR market since the introduction of regulation, very little has taken place.
Networks have acquired ARs through other firms changing their focus, such as St James’ Place’s decision in October to transfer its mortgage ARs to Home of Choice, but networks buying other firms has not been happening.
Justine Tomlinson, marketing manager at Mortgage Next, believed consolidation was the only was ahead for some firms: “A number of networks need to grow so merging can be the best route. There are also smaller networks who can’t sustain themselves so they are also looking at consolidation but they are holding out for the best bid."
