by Jenny Ruth
"The company name didn’t reflect truly what we do from a retail point of view," says managing director Carey Brunel.
While property industry professionals such as real estate agents, who tend to refer business to the company, were well aware that Property Pack’s principal activity was mortgage broking, that was less obvious to other potential customers, he says.
The Property Pack name harks back to the days when the company was trying to be a one-stop shop for all property related services including accounting and valuation services, but the company’s primary activity has always been mortgage broking.
Apart from the new name, Mortgage People is continuing business as usual, including its joint venture with Mortgage Link, the Mortgage Alliance. The Mortgage Alliance now comprises about 120 individual mortgage brokers, including about 30 from Mortgage People. Brunel says the alliance is likely to write $1.5 billion in mortgages this year.
Property Pack in Wellington, which is separately owned, will continue to use the brand with its operations in the lower North Island and South Island. It is also part of the Mortgage Alliance.
Meanwhile, the Property Pack Mortgage Trust, has been sold to Christchurch-based General Capital. The trust is a nominee company raising money from the public through a prospectus to fund mortgage lending to borrowers who for one reason or another don’t meet banks’ criteria.
"They’re better at funding" and now Mortgage People can concentrate on arranging loans and leave their administration to General Capital, Brunel says.
His company will still have access to the trust’s funds which are mostly used for short term purposes such as bridging loans.
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