The packager and branded lender has told Mortgage Introducer it is looking at the possibility of offering its own products but insisted this would not cause a conflict of interest with the lenders it currently packages and brands for.
Wayne Smethurst, partner at TFC, said: “We’re trying to cover all avenues in terms of distribution and growth. I don’t see that lenders should be disconcerted or upset by us being a lender in our own right.
“They go direct to intermediaries which could be seen as a conflict of interest for us. There’s no difference really. I don’t think we’ll be a threat to each other.”
Smethurst also revealed the firm had been approac-hed by several potential funders for its lender plans, including both UK and non-UK-based companies.
Rob Clifford, managing director of mortgageforce, commented: “The problem with offering both a lender and broker/packager proposition is it can cause consumer confusion. You have to make a clear distinction between the two.
“When branching into the lender channel, you have to be careful about selling to the consumer and separating your products from your lender panel products.”
Clifford added: “The onerous capital adequacy requirements will stop most intermediary businesses going down the lender route. But if you have the financial backing, it can be a viable option.”
Peter Beaumont, sales and marketing director at Mortgages plc, which is on TFC’s lender panel, said the packager’s plans were adventurous but the next logical step for the business.
“We’re seeing the market evolve into a more US-style model,” he said. “A lot of correspondent lenders are selling off assets to bigger lenders and the larger distributors are looking at how they can up their value channels.”
He added: “Becoming a new-style correspondent lender with third-party financial backing is a sensible thing for TFC to consider. It is up to individual lenders to decide if they would see this as a conflict of interest.”
