OFT could block latest Mortgage Brain buy-out

Office of Fair Trading has asked for written representations about any competition or public interest issues relating to Mortgage Brain’s plans to acquire point-of-sale and case management system provider MortgageStream for an undisclosed sum.

The move by OFT comes following its move in early 2011 to block Mortgage Brain’s proposed merger with TrigoldCrystal. Office of Fair Trading called the deal off over concerns that it would make Mortgage Brain too dominant in the market.

Speaking to FTAdviser at the end of last year, Mark Lofthouse, chief executive of Mortgage Brain, said the purchase of MortgageStream was set to be complete by the end of the first quarter.

The acquisition would mean that 13.4 per cent of authorised UK mortgage firms will be using either the Key, Mortgage Brain’s point-of-sale, CRM and compliance system, or MortgageStream.

He said: “From MortgageStream’s perspective, the acquisition will provide point of sale and compliance systems that will benefit from access to a wider range of product availability from Mortgage Brain.

“The acquisition means that one in eight mortgage firms who are authorised to sell mortgages will be using the Key or MortgageStream.”

Mr Lofthouse said this was part of Mortgage Brain’s long-term business strategy.

He said: “We are looking to acquire more firms. We have grown naturally these last two years and our last financial year growth was 4 per cent and this year it is set to be 8 per cent in a declining market. We will continue growing naturally and growing by acquisitions.”