Recruiter of mortgage brokers defies housing market gloom

Jul 18 2008 by Karen Dent, The Journal

A NORTH EAST firm has recruited more than 200 mortgage brokers around the UK and says it has plans to have more than 400 people working under its umbrella by the end of next year, despite the problems besetting the housing market.

Citri Ltd, which was set up a year ago, employs 22 people directly at its office in Gateshead. They look after the 236-strong team of self-employed mortgage brokers working across the UK as part of the Citri brand.

Company founder Keith Atkinson said: “We are an intermediary. We recruit people who are already mortgage brokers – they are self-employed and they go under the Citri name. What we offer is very close to a franchise. We are a new model to the market. Our competitors are networks. A network would provide some of what we provide but they all have individual brands, there is no coherence.”

Citri provides the mortgage advisers operating under its name with technical equipment and administrative support.

Mr Atkinson, who previously worked with insurers Zurich and AXA, said: “We’ve invested heavily in technology – we don’t need other offices.

“We supply all the hardware they need, like laptops and scanners, all the software and all of their registrations, such as the FSA (Financial Services Authority) and registration with all of the lenders. We also negotiate their commissions and deal with all of their compliances.

“We run a lean operation and our cost base is low. We’re not only surviving, we’re thriving.”

The credit crunch has led to fewer first time buyers being able to secure mortgages but the remortgage market is buoyant as homeowners look to release extra cash from their property.

“A huge amount of the business is remortgaging – probably about 65%, with the balance being between buy-to-let and new house purchases,” said Mr Atkinson.

“New house purchases make up about 25% to 30%. We do less than 7% in the sub-prime market.”

Citri is aiming to become one of the largest independent mortgage broking firms in the UK but has no plans to open offices outside of the region.

It is unlikely to need many more staff in the North East – Mr Atkinson estimates Citri will be able to service up to 1,000 brokers with 30 North East central office staff.