The Society, which recently acquired national franchise operation Mortgageforce, did not however rule out further expansion if the opportunity arose.
Roger Smith, group development director at the West Bromwich, said: “In the fullness of time we would not rule out making further acquisitions but at the moment we are very happy with what we have with Mortgageforce. If anything, we would like to help Mortgageforce to grow even faster than it could have before.”
However, he also said he expected a lot of change in the market over the next 12 months and that if opportunities presented themselves the Society would consider them.
Smith suggested that many other building societies were considering acquiring intermediary distribution channels. “A lot of other building societies have seen what we have done with Mortgageforce as an astute move.
“I think diversification is definitely a topic of conversation across many board tables at the moment,” he said.
Rob Clifford, managing director of Mortgageforce, said he too believed that other building societies would seek to acquire intermediary firms.
“They have realised that in order to survive they need to encourage non-interest generating sources of income. This will be critical for societies who can no longer rely on the traditional income streams which have sustained them over the last 100 years.”
He went on to warn societies they should not buy intermediary firms as a way of securing distribution but should view them as a stand-alone business. “There is a possibility that we could see future acquisition mistakes if building societies fall into this trap.”
