Property group Sherry FitzGerald is to establish a start-up mortgage intermediary company aimed at taking up to £250 million worth of business in the £8 billion annual residential mortgage market.

Sherry FitzGerald Mortgage Company aims to become the largest player in the mortgage intermediary business within two years.

Three of the company's directors have left senior positions at First Active to join the new entity. They include the bank's former head of brokers, Mr Steve McGettigan, who will be managing director of the mortgage company.

Sherry FitzGerald group will hold 80 per cent of the capital in the joint venture and the remaining 20 per cent will be held by seven directors. It is understood that Mr McGettigan will hold 71/2 per cent of the new entity's capital.

The mortgage company's chairman will be Mr Gerry Murphy, who has resigned as deputy chairman of Sherry FitzGerald group. A former group operations director with First Active who joined Sherry FitzGerald in 1997, Mr Murphy will hold 31/2 per cent of the capital.

Five other directors will hold the remaining 9 per cent. They are: Mr Eric Hannigan, formerly an account manager at First Active; Mr Fergus Lowe, also formerly of First Active; and Ms Vivienne Brophy and Mr Michael Kavanagh, both of Sherry FitzGerald. Ms Mari Hurley will be financial director.

The focus initially will be on establishing the business at Sherry FitzGerald's branch network, which is expected to grow from 15 to 20 in the short-to medium-term.

The company will have telephone sales facilities and it will also do business on-line.

In addition to its 80 per cent share, Sherry FitzGerald is providing start-up capital to the seven directors as a loan.