Purchasing a business - mortgage broker

[Ungarsee]

Hi,

I’m in the early stages of a slight career change and after 20+ years in banking I’m looking to set up a new directly authorised mortgage broking business in 2028. As part of this, the plan is to purchase a back book of clients from someone looking to retire or step down so we have an initial income stream whilst we actively grow.

First off, and appreciate this is a long shot, but is there anyone here looking to sell their mortgage broking business/back book of clients in the next couple of years?

Secondly, does anyone know where this type of business would be advertised? Or any groups I can join?

Thanks

[macron]

I owned estate agencies for 40 years, we separated out the mortgage arm "because independent", it frequently looked at people selling. In most cases there's fk all value- just because someone went through you for a mortgage 2 years ago, it really doesn't mean they're coming back. Be very wary of any claim to the contrary.

If there's a big BTL book that can be worth it, but a lot of the people who have a large number themselves deal with the same people through simplicity and trust. You may be able to deliver both, but experience suggests if someone retires, they'll review anyway, and there's no guarantee they'll use you. Esp if you're new. If they go to anyone else and explain their portfolio and likely need,they're in a great place to negotiate fees. 99% of out BTLers were no charge to them for any work/ advice, just the commission, because it was a great way to keep them on side. Why are they going to use a brand new company?

Life cover and other insurances typically have a trail commission, can be a lump sum,and if policy cancelled a proportion is clawed back. Or paid monthly, so smaller sum but if cancelled it just means no future payments. So you would have to see what a pack looked like, and again at review time any other broker is going to try and rebook them to get their own cut, fk you and yours.

Where advertised? Most brokers will approach others, because more often than not a lot of business is local. Not all, and plenty of faceless call centres, but local connections often yield positive responses from clients. Try Facebook and LI groups for brokers and advertise. Or any business brokerage will either have some, or know some who would consider going. Mainly they haven't because they have a massively inflated expectation of their worth in a flighty, uncertain industry.

[Ungarsee]

Thanks Macron, that’s all really helpful. I do know a lot of brokers through my current work but the issue is I’d prefer currently for them not to know my plan as I’m reliant on them placing business with me for now. As much as I’d never try and tap up one of their clients once I make the change, they will naturally have a level of distrust.

I’ve found a couple of Facebook groups so far which are annoyingly public and posting anonymously has not generated any real interactions. If there’s any groups anyone can recommend please do.

Thanks