Mortgage 2000 will charge firms from £199 a month to join its m2i network. The support network is targeted at intermediaries becoming directly authorised by the Financial Services Authority.
m2i will offer members compliance support, technology solutions, lender partnerships, mortgage processing, mortgage leads, electronic trading and a white-labelled website.
Sean Hornsby, managing director of m2i, said: “More and more research is showing a swing away from the appointed representative route, with an increase in firms opting for direct authorisation. Unfortunately far too many firms will still make the wrong decision thinking AR status is cheaper and easier. We have put together a comprehensive package which supports those firms choosing direct authorisation.”
Those joining the network will benefit from having their May to October MCCB renewal fee paid for as well as the initial application fee for direct authorisation to the FSA. Hornsby said: “We have seen a positive demand from those who want to protect their independence.”
Mortgage 2000 will also offer a network solution to appointed representatives. This is to be done in collaboration with another company according to Hornsby. He said heads of agreement were in the process of being signed and, if an announcement was not made before Christmas, he expected one to come early in the New Year.
Hornsby said the proposition had been well received at recent roadshows and catered best for Mortgage 2000’s existing clients. He said: “With over 60% of our current membership running independent businesses, we’re seeing a huge demand from them, and the marketplace as a whole, for an independent mortgage network.” Along with Mortgage 2000, Mortgage Promotions is one of the few network offerings to target the directly authorised market. The majority of offerings are aiming to take on principal status, and offer those directly authorised access to their panel of lenders.
