Lender Money Partners is to enter the direct-to-broker market through its acquisition of Residential 1, a specialist broker packager, for an undisclosed price.
The acquisition will enable the launch of a new channel, Money Partners Touch, targeting non-packaging brokers, introducers and independent financial advisers, which is anticipated to go into full operation in December 2006.
The new service will provide introducers and advisers with processing and packaging services, electronic decisions, online case management and direct access to Money Partners’ full range of specialist mortgage products.
The Kensington Group unit existing packaging broker operations will continue as normal. Existing directors and senior management team of Residential 1 will lead the Money Partners Touch proposition.
The secured loans broker will continue to function as a subsidiary of Money Partners.
This is an important move forward for Money Partners. We have deliberately controlled our growth and distribution in our first two years of operations, Colin Sanders, chief executive of Money Partners, told IFA Online. This has enabled us to build a profitable business in tough market conditions while preserving service excellence.
The deal follows Kensington’s recent move to increase its stake in Money Partners from an initial to 57%.