The network model has evolved considerably since the introduction of regulation to the mortgage market in October 2004, and networks now provide a range of solutions to brokers keen to consolidate or expand their propositions in the bustling market.
While some networks have consolidated, and others have left the market, opportunities and the need for networks remains strong, and they provide a valuable service to appointed representatives (ARs), and directly authorised (DA) intermediaries also. From compliance, training, marketing support and valuable links to distributors, mortgage networks are a viable option for new intermediaries stepping into the market, to those looking for an increased level of support.
With increased attention on the mortgage market from the FSA, from self-cert to financial promotions and the non-conforming market, many intermediaries see networks as providing a support that they can use. With a move to a principles based approach the changes that intermediaries will need to embrace comprehend and action the regulatory changes should mean that networks will continue to provide a valuable service for the intermediary community.
A stepping up of enforcement action by the regulator may also see firms re-consider their position within the market to get closer to large organisations that can provide regulatory support, in addition to product exclusives, competitive proc fees and support from marketing to the area of compliance.
While claims that the number of networks will further dwindle in the next 12 to 18 months, those that do survive will undoubtedly continue to provide a valuable service to their members, and those that offer advice on an ad-hoc basis to DAs.
