OFT inquiry into latest Mortgage Brain deal

Friday 27th January 2012

The Office of Fair Trading has decided to inquire into the proposed acquisition by Mortgage Brain of MortgageStream.

When Mortgage Brain announced the deal late last year, it said the acquisition would mean that 13.4% of UK mortgage firms – or one in eight mortgage brokers – would either be using the Key, Mortgage Brain’s system, or MortgageStream.

The deal had been expected to complete within the first three months of this year, and was notified voluntarily to the OFT. But now the OFT has asked for written representations about any competition or public interest issues relating to the deal.

Last year, the OFT decided to refer Mortgage Brain’s proposed merger with TrigoldCrystal to the Competition Commission, after saying it had received a significant number of third party concerns, and the deal was called off.

Mortgage Brain claims to be the most widely used provider of point-of-sale, compliance, mortgage sourcing and electronic trading products and services for mortgage intermediaries.

MBL Holdings, formed in 1986, is jointly owned by a consortium of six – Barclays Woolwich, Lloyds Banking Group, Nationwide, Northern Rock, Royal Bank of Scotland and Santander, which together account for over 65% of the new business mortgage market in the UK.

Anyone wishing to comment on the proposed acquisition by Mortgage Brain of MortgageStream has until February 8 to do so. A decision on the deal is expected by March 20, when the OFT can either clear the deal or refer it to the Competition Commission – a process which could take another six months.

Anyone who would like to comment should email raul.nieto@oft.gsi.gov.uk