The group announced today (March 31) it would launch the mortgage advice arm and would focus on first-time buyers, homemovers, those looking to remortgage and landlords seeking buy-to-let products.
Acknowledging the difficult time for mortgage advice caused by the coronavirus pandemic, Beaufort said it was launching the arm with a long-term plan in mind to support the advisers in its network.
As part of the launch, Dan Godfrey, an independent mortgage adviser, has been appointed to start building the offering through the group’s advice business, Beaufort Financial.
He joins Beaufort from wealth management firm Quest Financial Solutions where he worked with a wide range of clients on finding bespoke mortgage solutions.
Andrew Bennett, joint executive chairman at Beaufort Group, said: “This is a major milestone for Beaufort Group and allows us to offer a seamless service for clients who need advice in this marketplace.
“In Mr Godfrey, we have found the perfect individual to help us build the new division, given his clear empathy for the challenges buyers face. We are very excited to have him on board and are eager to work with him to help more people access mortgage solutions.”
Mr Bennett said although most consumers only looked for mortgage advice every few years, the launch would allow Beaufort’s clients to work with a business they “already know and trust”.
Mr Godfrey added taking out a mortgage was a “big financial commitment” so access to clear and easy to understand advice was key.
He said: “News continues to highlight the challenges first-time buyers have in getting onto the property ladder, while it is not uncommon for those already on the ladder to become overwhelmed by the vast range of options and lenders out in the market.
“I am therefore delighted to be joining Beaufort Group to spearhead this exciting development for the business and am eager to work with a team that has a genuine passion for good financial advice and the impact it can have on peoples’ everyday lives.”
Now is a tricky time to launch into the mortgage advice space, with mortgage brokers predicting up to 30 per cent of broker businesses may not survive the coronavirus crisis as the home purchase market looks set to grind to a halt.
Last week (March 26) the government edged closer to suspending the housing market as it told those in the early stages of buying or selling to delay the process and that no visitors were allowed into properties for the time being.
Instead it suggested those looking to sell “use this time to start gathering together all the information you will need” while consumers who had already exchanged contracts were urged to delay the move date until after the stay-at-home measures had been lifted.
Funds from lenders have dried up over the past few weeks as banks and building societies pull back on new mortgages.
Major lender Barclays has limited the amount of mortgage applications it is accepting from brokers in a bid to restrict the flow of applications through its case booking process and has limited its high loan-to-value products.
Lloyds Banking Group — which includes Halifax, Scottish Widows and BM Solutions and is the UK’s largest lender — and Nationwide have capped their maximum lending at 60 per cent LTV while Vida Homeloans and Together Money have halted all new mortgage lending.
HSBC is among a selection of lenders to have pulled their tracker mortgage products from the market.
But Beaufort said: "The mortgage market has been obviously affected in these recent times, however this is a long-term strategy for us to be providing additional services to existing network members and to build our own mortgage business.
"We are committed to the long-term perspective, which is to provide services to advisers and clients alike in areas where they potentially do not concentrate."
Beaufort Group currently has 50 advisers with more than 25,000 clients as well as a DFM service — Beaufort Investment Management — which has about £1bn funds under management.
Last year Beaufort's chief executive Derrick Dunne said the business had ambitions to become be one of the biggest networks in the country.
imogen.tew@ft.com
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