Expanding Moneygate going up in the world

Feb 7 2008 by Peter McCusker, The Journal

A RAPIDLY growing web-based financial services company is moving into new headquarters as it presses ahead with ambitious growth plans to increase its presence in the North-East and the UK.

Moneygate, the South Tyneside mortgage and finance advice firm, has grown rapidly since its launch in July 2006. Employing over 30 experts at its existing premises, it is currently training a further 10 and is aiming for 50 by the summer.

Its national face-to-face team of independent financial advisers is being increased from 60 to 150 giving it a greater UK-wide penetration. It currently signs up new customers at the rate of 600 per week. It is the first tenant to take the keys to a 6,000 sq ft new office development at the Bulrushes on Boldon Business Park, at the Testos roundabout on the junction of the A184 and the A19.

Commercial director Dennis Reed, said: “We’ve established a good location here at the Park, so moving to the Bulrushes seemed an ideal solution.”

The South Tyneside-based firm offers independent financial advice to help customers cut the cost of their mortgage, insurance and loan payments.

Customers are acquired online while they are serviced through an expert team of face-to-face advisers or over the telephone through its direct sales team. It says it is now on track to deliver over £600m in lending and £8m in fees and commissions this financial year.

Mr Reed added: “Changes in customer buying habits have led to an increase in demand for on-line and telephone based financial advice.

“The growing team of direct advisers also has the benefit of a back-office function that takes away all post-sale activity and a sales executive team that deals with creating client fact-finds.

“The process is three times more efficient than traditional face-to-face advice and enables us to concentrate our expertise solely upon our clients.”

“We have a unique model in offering a lifetime service for a fixed fee of 1.25%. We monitor a mortgage throughout its lifetime to ensure customers get the best deal.”

The company was started in 2004 by Mr Reed and Graham Jackson, an independent financial adviser who previously worked for building societies.

Moneygate launched from The Quadrus Centre which is run by TEDCO (The Tyneside Economic Development Company Ltd).

TEDCO senior centre manager, Deborah Evans said: “The launch and growth of Moneygate has been remarkable.

“The move to larger premises is a testament to the planning and research that went into their unique business model.”