London Mortgage Company (LMC), the recently launched second mortgage provider, and a division of Matlock Bank, has signed a three-year contract estimated to be worth in excess of one million pounds in revenues with Marlborough Stirling Mortgage Services Limited (MSMS). MSMS is a new mortgage services company set up in December 2000 by Marlborough Stirling and Egg. MSMS will support LMC`s loan completion and servicing functions. LMC joins Egg and Prudential Bank as clients of MSMS.
LMC (also launched in December 2000) sees a significant opportunity to enter the second mortgage market by providing intermediaries with a solution that is designed to offer borrowers a flexible way of meeting their financial requirements. LMC believes that TPA (Third Party Administration) is the most effective way of providing its solution.
By outsourcing its mortgage administration to MSMS, LMC expects to be able to offer intermediaries and borrowers a rapid, high quality mortgage service whilst controlling administrative overheads. LMC believes that this capability is crucial to establishing a leading position in what it considers to be a competitive marketplace.
MSMS won the contract with LMC partly as a result of its systems expertise and experience of third party administration and packaging, which it has through Marlborough Stirling and Egg. MSMS` outsourcing service, which is driven by Optimus, Marlborough Stirling`s back office administration solution, is expected to give LMC scalability and flexibility for the future.
Head of London Mortgage Company, Robert Owen, said: "LMC has entered the second mortgage market to make an impact and establish itself as a force to be reckoned with. In order to achieve this we recognise that we need to focus on our core competencies. We believe our relationship with MSMS will help us to do what we do best whilst they ensure that our back office operations are focused on quality and rapid service."
Joe Bradley, chief executive at MSMS, said: "We are delighted to have secured LMC as a client so soon after our launch. We believe this relationship represents a significant opportunity for both MSMS and LMC to make a lasting impact on the second mortgage market."
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MSMS is a new mortgage services company established in December 2000 by Egg, a leading UK e-commerce financial services brand, and Marlborough Stirling, a business solutions provider to the mortgage, life and pensions and investment industries. MSMS targets both traditional and new entrant lenders and intermediaries, including those emerging from non-financial sectors such as utilities, with end-to-end Business Service Provisioning (BSP) solutions. By allowing MSMS to manage their administration operations, it is intended that lenders and intermediaries will be able to reduce operational costs, establish e-mortgage solutions, launch innovative new products quickly and benefit from improved customer service.
LMC
Matlock Bank was established in 1958 and has developed its business by providing bespoke banking services for private individuals. It has been considering moving into consumer lending for some time.
The Bank is a member of the British Bankers Association, the Banking Ombudsman Scheme and the Consumer Trade Association.
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