101 Professional Mortgage Partnerships (PMP) appointed representatives (ARs) were asked how many networks they believed would be in existence next year.
Just over half (52 per cent) of respondents predicted there would be between 11 and 20 networks this time next year, while 27 per cent said there could be between 21 and 50 remaining.
Only 16 per cent of those surveyed believed there would 10 or less networks welcoming in 2006. Just 5 per cent expected the current status quo to continue.
Tony Jones, managing director of Pink Home Loans, said the predictions come as no surprise. “I think many more firms went directly authorised than people expected leaving a shortfall of good quality ARs. I personally believe there will be around a dozen networks left when all is said and done.”
Broker Karl Jones said: “Many intermediaries got themselves AR status, now they’re looking around for a better deal. There won’t be demand for more than 20 networks.”
Martyn Bell, head of network at PMP, said: “As a number of traditional brokers realise, a considerable increase in income can be generated by the larger specialist mortgage networks.
“The established networks carry higher compliance burdens and there is historical liability over what has become accepted as mis-selling of endowments, pensions and precipice bonds. We will witness more movement in the coming months.
“As an example, one broker has just confirmed with us that he would see his income increase by almost 50 per cent for no extra work if he moved from the life company regime he has worked in for six years.”
