It is not just the football transfer market that is a hive of activity at the moment; many mortgage brokers across the country are using the New Year as an opportunity for a fresh start and considering whether they might be better off under the auspices of another network.

While advisers may not be able to command the huge wage hikes and signing-on fees that footballers do when they switch allegiances, there are still ample opportunities to enhance their lot whether through reduced retentions, access to keener rates or diversification into previously unexplored sectors of the market.

Therefore, what should brokers be considering when weighing up the decision of whether to move or stay put?

It may seem crass, but money is important. Calculate if your bottom line could be better off with another network: are its fees more reasonable than your current network; how do its retentions and commissions compare?

Consumer choice is another key consideration. Look at the panel of lenders that prospective partners offer and ask yourself if your customers may be better served by joining forces with another network.

Sponsored

How to get your first-time buyer clients mortgage ready

Sponsored by Halifax Intermediaries

Finally, think about how proactive your network is, rather than simply reacting to your requests.

Does it go out of the way to keep you informed about market developments and product updates through emails and phone calls? Is it keeping up with regulatory changes and taking care or your compliance needs?

It can be simple to take the easy option and stay where you are, even if you know you are not getting the best deal.

However, switching is not as complex as you might think.

It is worth looking at the intricacies of your current agreement to check the terms and conditions around notice periods and ongoing trail payments. Often, you will find your new network is happy to help with the legwork involved in the switching process.

Banking inertia is a common phrase used to describe customers unwilling to switch banks due to the perceived hassle involved, so don’t let the network equivalent prevent you from fulfilling your potential.

Case study

Stewart Beards is director of Northamptonshire-based brokerage SD Beards Ltd, which recently switched networks to Stonebridge.

Richard Adams: Why did you decide to leave your previous network?

Stewart Beards: Having been with Positive Solutions for four years, it was not a decision I took lightly. However, increasing retention commissions forced me to look at alternative networks that focused purely on mortgage brokers and did not take on the risk that IFAs represent and the subsequent increased commission retention that this caused.

RA: What made you choose Stonebridge?

SB: I was first attracted by its retention commission structure. The costs were 25% less than my previous network and, therefore, just by changing over I had the chance to increase my profit.

RA: What would be your advice for other brokers thinking of changing networks?

SB: I would always be careful about giving advice to other brokers, because everyone’s circumstances are different. However, I can only speak positively of the experience I have had since making the move.

RA: What are the main advantages of being an appointed representative rather than directly authorised?

SB: For me, the main advantage is that I am part of something bigger than my own company. I like the support it gives, both from a compliance point of view and business opportunities, through having access to exclusive mortgage and insurance deals that I would not be privy to otherwise.

As a small business, it means that I can concentrate on growing my business and making more money, while my network watches my back, supports me and gives me greater tools to enhance my business.

RA: How do you expect your business to change as a result of switching networks?

SB: In the five months since I switched, I have already seen an increase in profits, partly from lower costs, but also because it has helped me concentrate on streamlining my business and take advantage of new business opportunities. I am now generating income from areas that I never previously considered.

In these difficult economic times, it is more important than ever for mortgage brokers to be able to capitalise on every business opportunity that we come across.