The study by the lender revealed 58 per cent of respondents believed networks would still exist within a regulated environment post-2008. Only 7 per cent of the 206 people questioned believed networks would have no viable role to play in the market after 2008. However 35 per cent of respondents were unsure of the future of networks within two years.
Commenting on the findings, Bill Warren, director at Complete Mortgage and Loans Service, said networks played a valuable role in the market. However, he admitted there was an element of market uncertainty surrounding the use of networks. He said: “I can understand why there were quite a few people uncertain about the future of networks. There is a lack of understanding about networks, and the general perception is probably that people don’t know too much about what they actually do.
“I support the view that networks will still be around in two years time but it might be more of a hybrid model that exists. It might be that there will be a holding company, that will have finance, marketing and compliance departments, but the network will still work separately under its own name.”
“If networks evolve with the market and continue to provide a good service, refreshing their offers and increasing their propositions then networks will play a valuable role,” he added.
Kim Barrett, proprietor at KS Barrett & Associates, argued networks were more of an option for ‘new blood’ entering the market. He said: “If costs become a big concern, as they are starting to do, then networks may suffer, as intermediaries are charged a membership fee. Mortgage advisers who use networks like to have a level of support, and as long as there is a need in the market then they will continue to exist.”
