Fairstone has bought two mortgage firms which will see the group conduct £2.4bn of mortgage lending each year.
It has bought Perthshire-based Next Home and Kent-based Bellegrove Mortgage Services.
Both firms, which bring a total of 22 staff and more than 6,000 clients, are looking to grow cross-referral opportunities to provide a holistic service for their clients.
Next Home principals John Greener and Alex McDonald explained that it was Fairstone’s commitment to supporting businesses to grow that was the main factor in their decision to join the firm.
Greener said: “Since we started in 2004, we have strived and succeeded in making Next Home the number one choice for consumers in Perthshire.
“We are delighted to be joining Fairstone to further enhance our opportunities for growth and security.”
Meanwhile Bellegrove Mortgage Services principals Simon Heron, Jenny Saunders and Perry Barnes said Fairstone’s financial strength would enable the business to fulfil their "future expansion plans to grow the business".
Heron added: “Being part of a market leading and forward-thinking business such as Fairstone will give our clients the best access to advice and support throughout their lifetime while enabling us to really grow the business for the future.”
Fairstone said it has a run-rate fee income in excess of £130mn and its mortgage channel equates to around 8 per cent of total fee income.
Lee Hartley, chief executive officer of Fairstone, said: “Both are client-focused, quality firms who have established an excellent reputation for providing first-class service over many years.
“They are also very ambitious and are looking to grow and we are delighted to be able to support them on the next stage of their journeys.”
Hartley said while the firm is primarily a wealth management house, the mortgage sector is valuable too as there is a synergy between the two.
“Every mortgage adviser in the group works with IFAs who can provide wealth advice to their clients and vice versa, providing a complete wealth offering across the business,” he said.
“Our mortgage channel gives us a position of real scale in the market, and we are continuing to invest in this area of the business, leveraging our proprietary technology system and relationships with some of the leading UK lenders, to provide further efficiencies for our clients and advisers in terms of turnaround times and ease of processes.”
Last month, Fairstone expanded its operations into five new areas with two acquisitions, bringing in £380mn in assets under management.
The company bought Station Financial IFA situated across three offices - New Milton in Hampshire, and Bridgend and Chepstow in Wales.
It also completed a takeover of Advanced Financial Services, which doubled the firm’s presence in County Durham - the firm has two offices in Newton Aycliffe and Consett.
sonia.rach@ft.com
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