The Mortgage Operation (TMO), which sells mortgages exclusively through brokers, has shortlisted three agencies for its advertising account, understood to be worth about &£5m.
Court Burkitt, Cogent and Doner Cardwell Hawkins are to pitch for the business.
Although TMO does not market products direct to customers, the company believes an advertising campaign could stimulate demand and increase sales.
The pitch comes as the industry faces pressure from new direct operators and Government regulation.
The Government recently announced new CAT – cost, access and terms – standards for mortgages which will put a big squeeze on many providers’ profit margins.
Meanwhile, Barclays’ telephone savings and investment arm B2 is gearing up to offer mortgages (MW August 19).
Internet financial services company The Exchange has also set up direct mortgage provider emfinance (MW August 5). It is headed by Gerry O’Neill, former business development manager at TMO.The Exchange, which floated on the London Stock Exchange for &£410m in August, recently invested an undisclosed sum in TMO.