This means that appointed representatives of other networks such as Bankhall, Sesame and Personal Touch, will not have access to direct to lender products negotiated exclusively by the three networks. Each of these distributors will still make its exclusive products available to directly authorised intermediaries.
A spokesperson for the three mortgage networks commented: "Access to products is a major concern for brokers at the moment and there is a view that they will be given access to every product in the market, including exclusives negotiated by individual networks, regardless of the network they are a member of. This is not the case and direct to lender exclusive products offered by Mortgage Intelligence, Pink Home Loans, and Mortgage Next will only be made available to each other’s appointed representatives.
"Each mortgage distributor has its own customer proposition and position in the intermediary market place. What brings the three networks together is the high level of mortgage expertise and experience in negotiating exclusive products with lenders and the back-up they provide through their helpdesks. Intermediaries specialising in the mortgage market need to consider this when comparing networks with a mortgage background with other networks with an investment or insurance background."
The spokesperson added: "Pink Home Loans, Mortgage Next and Mortgage Intelligence are in a financially strong position as they are all part of wider financial groups providing prospective ARs with peace of mind that these networks are committed to providing customer solutions in the long-term. Pink Home Loans is part of the Skipton Building Society group of companies; Mortgage Intelligence is part of the Close Brothers group of companies; and Mortgage Next is part of the Freedom Finance group of companies."
Michael Bolton, head of mortgages at of BM Solutions, said: "These are the three leading names amongst mortgage clubs and equally are the vanguard when it comes to compliance and implementation of MCOB. We are delighted to be to be able to support this new initiative".
And Tim Sturley, head of business development at Mortgage Express, commented: "Mortgages Express has supported all three mortgage distributors with exclusive products for many years. We will be happy to continue to help them differentiate their propositions to their appointed representatives in this way as we enter the new regulated world."
Mortgage Next, Mortgage Intelligence and Pink Home Loans have all received their Minded To Authorise letters from the FSA.
