The tide was turning purely on the intensity of regulation particularly on small to medium sized businesses said Shearman at the Mortgage Business Expo in London.
“Just keeping up with the Mortgage Market Review, the Retail Distribution Review, the amount of regulation coming out that all mortgage brokers need to understand. That’s a real challenge if you’re independent.”
Shearman also said that providers were focusing more on the larger entities where the perception is that they could have more control, they can understand more about the individual sellers and how they get the business view.
“Under all those factors, that’s where I understand that the AR route is the stronger one to put business through.”
David Copland, chief executive of Pink Home Loans, said: “I personally would take the AR route if I was a broker. The strength of the broker is selling and client relationship and those skill sets rarely cross over to sifting through regulation.
“A good network will have strong back office support; however we are now seeing good support for DAs coming through as well.”
Gemma Harle, managing director of TenetLime, added: “Whatever route a broker chooses to go down, it should fit their business model first and foremost and if a broker wants to become an AR then they should find a network that will accommodate them.
“It’s still your business. ARs are typically better for small and medium businesses but there are good support systems for DAs. It depends on the business model.”
