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Mortgage clubs Challenges
However, there is no need to fear as there are a Brokers continue to be at the cutting edge of
number of resources out there that can do all the the market. But, as if the challenges of the
hard work on behalf of a firm. Of course I’m current economic climate weren’t bad enough,
referring to the benefits that can be offered by the past month or so has seen them at the
mortgage clubs. Clubs and networks form a forefront of a bout of furious gesticulation
rudimentary aggregator model by building a from the Financial Services Authority and
range of products and services from a number of the Council of Mortgage Lenders pointing
sectors and even competing sources. The the finger at brokers for the current market
strength of such an organisation lies in its ability woes.
to create an environment or indeed club to allow This also comes on the back of recent FSA
members access to this range of services. By figures on the numbers of intermediary firms
being in a position to supply this range of goods leaving the industry in the first three months of
the club – because of the potential volumes it 2009. Its latest mortgage intermediary figures
can offer to the provider of the services – can show the number of DA firms who primarily
more often than not negotiate a better deal for deal with mortgages fell from 6,725 in
their members than an individual firm may be December 2008 to just 6,422 in March 2009. In
able to access. There are also potential benefits December 2007, there were 7,174 directly
from enhanced service level agreement authorised mortgage intermediary firms
negotiations that the club can reach an operating in the market.
agreement upon. The figures also show that 119 appointed
Focusing still on time and resources, when representative mortgage intermediary firms left
looking at a club’s strategic partners the industry in the first quarter of this year,
intermediaries can be assured that a good, well down from 4,818 to 4,699. IFA numbers also
run organisation will have carried out strict due fell during the first quarter of the year; the
diligence across its range of suppliers. Support number of directly authorised IFA firms fell by
and training are also key elements to the 74, down to 5,501 from 5,575. Also, 15 AR IFAs
advantages of strong partnerships. Amidst tough left the industry over the period, down from
operating conditions there can be great benefits 9,392 to 9,377.
gained through using a club’s wide range of However, it’s important to keep things in
offerings. This could be through simple training perspective as whilst most of the headlines
sessions in areas of the market that a smaller from these figures focused on DA numbers
broker may not have access to otherwise, exiting the market, when taking into account
through to negotiating technology links which the total numbers of DA’s and AR’s operating in
may result in savings that brokers may also have the market it actually works out that only 4.5%
not been able to negotiate for themselves. of DA’s have left the market compared to 2.5%
Research and chasing up proc fees/missed of AR’s. This is hardly the greatest of headline
payments can take up a significant amount of grabbing differentials especially when you take
any broker’s time. Working with an into account the number who may simply have
organisation that has done all the leg work on a naturally come close to retirement age.
brokers behalf in terms of keeping them This illustrates that the whole of the
informed about new products and services or intermediary market continues to face a
ensuring some form of payment guarantees are number of challenges and these are certainly
in place, not only helps with peace of mind but not just those facing DAs. The whole market
also allows broker to do what they do best and continues to endure a torrid time and this is
that is to sell. why it is important that the government,
A good mortgage club will enable members lenders, mortgage clubs and networks continue
to concentrate as much of their time as possible to support intermediaries from all corners of
on the sales process and, as illustrated, help the sector.
with sales training and processes regarding how Outsourcing and strategic partnerships can
a range of products and services can fit in with also play an important role in this process but
existing systems and procedures. Opening up a intermediary firms must remember to maintain
number of strategic partnerships with that the quality of their partners is consistent
organisations across a range of sectors will along with ensuring robust agreement
inevitably enable member’s access to a greater procedures are in place. Failing that why not
array of selling opportunities across a range of choose a mortgage club you can trust to make
products and services. Areas such as mortgages, sure these checklists are firmly in place in order
secured loans, debt management, life products, to access a range of products and services
general insurance, lead generation, without the risks or potential time and cost
conveyancing, private surveys, self implications. Of course by the same ethos this
build/renovation, commercial, bridging/private means that you should choose any club you
banking, compliance sourcing and client deal with wisely and by choosing wisely this
management systems should all be firmly on could prove a very effective over the long term
the agenda of a forward thinking intermediary. and add real value to a firm’s proposition.
www.mortgageintroducer.com July/August 2009 Mortgage Introducer
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