The business-to-consumer provider of non-conforming mortgages has set up packaging operation Vesta Packaging to target those intermediaries who it believes do not have the volume of business to afford membership of a network or direct authorisation and who are therefore contemplating moving out of mortgage sales. Vesta put this number at over 10,000.
Bill Warren, network director of Complete Mortgages & Loan Services Ltd, said: “Of course there may be some people and firms disappearing from the market but the figure being bandied around by Vesta is ridiculous.”
When questioned where the figure of 10,000 was sourced Mark Leaper, managing director of Vesta Packaging, replied: “The figure is purely based upon the general feeling within the market place. When I speak to our various peers and the lender community, an estimate in this region is expected to take no action in respect of either direct authorisation or appointed representative status. Nothing scientific but based on an industry instinct.”
Peter Gladdy, director of Mortgages Direct, commented: “That is a massive figure. I don’t believe for one minute that so many intermediaries will drop out of the industry.”
Vic Jannels, managing director at All Types of Mortgages (AToM) said: “Good livings are made from mortgages and I can’t see so many people dropping out of it. It sounds ever so slightly over the top.”
