While not everyone may have changed jobs in the middle of the pandemic as I did, there does seem to have been a lot of brokers considering their routes to market – as well as the routes they take to get some of the key deals available.
One of the murmurings I have heard most from brokers, during these times, is whether they really want a network to be top slicing their income or charging regular fees.
Having come from a network background, I completely understand the security that it can provide some brokers, particularly from a compliance perspective.
But with mortgage clubs now providing all-encompassing compliance solutions for those who want them, this is no longer the unique selling point that it was for the networks.
Many brokers are, justifiably, questioning the costs versus the benefits of this type of relationship.
Most mortgage advisers just want to get on with the advice side of the business so being able to outsource things like compliance and technology to other competent bodies is a source of great relief. It also increases the options available.
More of the enquiries we have had in recent months have come since our compliance proposition was launched.
Brokers were taking the time, during lockdown, to weigh up their options.
Software issues driving decisions
Of course, any broker making the switch from appointed representative (AR) of a network to directly authorised (DA) needs to know that they will be able to get the same levels of rates and availability to mortgages that they can under a network – and that is where mortgage clubs come in.
To provide the services that you need, as well as access to rates and whole of market mortgage selections – but on your terms.
The biggest difference is that a relationship with a mortgage club is on your terms, these are your decisions about your business.
A mortgage club just provides the services to support you, enabling you to choose the backing you need, so you keep the bits you do want to do and outsource those you’re not the best at.
If you are an AR thinking of moving to being directly authorised, then you will be contemplating which mortgage club to use, perhaps for the first time.
Choosing one that will help you with your journey to being directly authorised can help ensure that the process is smooth and you are not doing it on your own.
One thing our business development managers have heard from ARs recently is that software issues are another driving factor in their decision to move from a network to becoming a DA broker.
So, finding a club that can also provide you with the best technology and CRM systems, along with any assistance you might need around your business operation, is vital.