Bankers cast a wider net with european mortgage service

Three ex-investment bankers are poised to change the nature of British banking. MyNewDeal.com, set to launch in mid-April, will focus on the residential mortgage market.

Three ex-investment bankers are poised to change the nature of British banking. MyNewDeal.com, set to launch in mid-April, will focus on the residential mortgage market.

The launch of MyNewDeal will mark a major new development in e-commerce. It will compete with other online lenders such as Charcolonline, E-loan and Moneysupermarket, but will have the added bonus of being pan-European.

MyNewDeal will launch almost simultaneously in the UK and France, followed by the Benelux countries in May and Germany by year's end with plans for Italy and Scandinavia next year. Stock market flotation is envisaged within two years and it is now trying to raise £5m to £7m to finance these plans.

When MyNewDeal goes live, British customers will have easy access to information about foreign mortgage lenders for the first time. The products of every mortgage lender in the countries where it's online will be available for comparison. UK consumers may well find they can obtain the best deal on their mortgage from a Continental lender. This will also benefit lenders, letting them access the European market more economically.

The trio, Marc Badrichani, former director of Deutsche Bank; Ian Wilson, ex-director of General Re Financial Products and Credit Suisse First Boston; and Nick Woolnough, former MD of Credit Suisse First Boston, have a history in financial products. Their website will offer various mortgage-related products (the details of which have yet to be disclosed) as well as mortgage rate and cost comparisons.

"We've been advising banks about their products for years so we know all the tricks of the trade and understand how negative aspects are disguised in order to make the product more sexy and attractive to the customer," said Mr Badrichani. "We are, therefore, confident that MyNewDeal will provide the best service on the market for those wanting a mortgage."

Mr Wilson claims MyNewDeal will offer some unique products, including a solution to the endowment problem. As yet though the company is unwilling to provide any details of these products.