Given the well-documented problems recently experienced by some parts of the industry, Mortgage Introducer asked brokers, ‘Is Venturion’s model a viable option?’
Simon Chalk, mortgage planner, Mortgage Portfolio Services
“Packagers aren’t dead in the water. Unfortunately they seem to keep surviving no matter how many swords you put in them. I am no fan of packagers, but to get access to some lenders I have to use them. But it seems strange that this new lender, which will be launching into an already crowded marketplace that is declining in business volumes, will only make its products available via packagers. It could prove risky.”
John Stewart, director, PMI Independent Financial Advisers
“We get a lot of packagers phoning us up, which suggests they are struggling at the moment. I do think there is still a need for them in the regulated arena. Sourcing systems aren’t particularly helpful when it comes to non-conforming cases, so a good packager that knows the market can be very useful. This may be Venturion’s strategy, and it could be very successful.”
Mike Fitzgerald, sales director, Brentchase Financial Services
“Venturion’s business plan is to deal with the ‘super’ packagers. I hope it does make a go of it. But it would have to get a lot of support from packagers to make it viable. And the key question is, are brokers supporting packagers as much as they used to? It’s all a bit shaky, and I can’t see Victoria Mortgage Funding making a lot of money.”
Trevor Youens, director, Flower IFA
“The people at Venturion don’t seem to go into things lightly. They’re no mugs and will have thought through their strategy well. The packagers it has picked will mean it has guaranteed delivery anyway. I would have thought that actually launching a new lender is more risky given that all the bases seem covered already.”
Kevin Morgan, managing director, Consilium Financial Planning
“There is enough choice out there now for brokers to decide which options to select. If they’re happy with the lender’s offering, they may not mind so much that they have to go via a packager. Alternatively, there will be a similar lender out there who will not use packagers. I can see why Venturion is doing this though. It will keep its costs down to a minimum as the administration work will be passed onto the packager. Which in turn might mean it can provide better-priced products.”
Mark Osland, director, Fidelius
“There seems to be a constant stream of companies opening up to get into the non-conforming market. They must see a business opportunity out there. Do we assume this new lender has done its homework or do we assume it won’t be around in a year’s time? Who knows. I’d say 99 per cent of the time I can get the products I need right off the shelf from a mainstream lender so I have no real need to use a packager. But that’s not to say there’s no place out there for packagers, especially in the non-conforming market.”
Rod Murdison, proprietor, Murdison & Browning
“Venturion comes from a packaging background so it’s no surprise they’re doing this. Increasingly though, lenders are wanting their cake and eating it too. They may offer good rates, but you may find they are only available through certain channels. There is quite a bit of life left in the packaging industry. Often when sourcing deals on Trigold or Mortgage Brain, it will show that the best deals are only accessible though a packager.”
