Money Partners is to launch into the direct to broker market through the acquisition of specialist broker packager Residential 1 for an undisclosed sum.
The acquisition will also see the lender launch its own direct channel - Money Partners Touch – aimed at non-packaging brokers, introducers and IFAs which will go into full operation in December.
The subsidiary will provide processing and packaging services, electronic decision-in-principle facilities and online case management.
The lender says there will be no change to its existing packager relationships nor any redundancies as a result of its acquisition of Residential 1.
The deal will see Residential 1 become a Money Partners subsidiary but the brand will remain and Residential 1 will continue to offer secured loans from a panel of providers.
Colin Sanders, chief executive of Money Partners, says: “This is an important move forward for Money Partners. We have deliberately controlled our growth and distribution in our first two years of operations. This has enabled us to build a profitable business in tough market conditions while preserving service excellence. Our core broker-packager partnerships have made this possible, and they remain the bedrock of our business.”
The deal follows the recent announcement that Kensington Mortgages increased its stake in Money Partners from an initial consideration of 20% of the lender to 57%. Money Partners was established in November 2004 as a joint venture with Kensington Mortgages and Kensington has the option to acquire more of the business over time.
Kensington had the option to acquire 50% of Money Partners in 2006 but the fact it has acquired 57% of the lender is no indication Kensington will acquire the remainder of the company ahead of its next option – when it has the option to acquire 100% of the lender - in 2009, adds Sanders.
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