Newcastle8%pibs Regulatory News (MBSR)

31 Jul 2008 16:02



Further Mortgage Network Consolidation

Mortgage Broking Services Limited and Cotswold Mortgage Services Limited

Mortgage Broking Services Limited ("MBSL"), a wholly owned subsidiary of Manchester Building Society, is to take on the mortgage network operations of Cotswold Mortgage Services Limited ("CMSL"). The two operations already enjoy a close association through the Society which holds a 19.9% equity stake in CMSL as well as 100% ownership of MBSL. As part of the agreement, the Society is to dispose of its shareholding in CMSL, with CMSL continuing its other mortgage interests as a packager. CMSL, trading as Mortgage Marketing Centre will also become the preferred packager of the enlarged network which will continue to trade under the MBSL name.

Chris French, the Managing Director of CMSL becomes Non-Executive Chairman of the enlarged network and Graham Rees, CMSL Compliance Director, will take over as CMSL's Managing Director.

Within MBSL, Tony Corrigan, is to step down as Managing Director at the end of October to pursue other business interests. Stephen Perry, currently MBSL's Finance Manager, will step up to the new position of Chief Operating Officer.

David Cowie, Chief Executive of Manchester Building Society commented:

"In the current depressed state of the housing market, consolidation of networks is necessary to maintain economies of scale at lower levels of business volume. The merger of the networks also provides the enlarged operation with the opportunity to benefit from Chris French's vast experience in the mortgage market.

Tony Corrigan has stewarded MBSL through volatile times over the past two years and has seen our network member numbers increase by 60% in that time. We wish him well in his future ventures."

Footnotes:

1. Manchester Building Society is the UK's 25th largest Society with Group Total Assets at the end of June (unaudited) in excess of £870 million.

2. In a distinguished career in the mortgage industry, Chris French has held senior positions with Nationwide Building Society rising to the position of General Manager, then with National Home Loans between 1993 and 1995 before being one of the founders of Kensington Mortgage Company Plc. Between 1999 and 2006 he was a non-executive director of Lambeth Building Society.