Only a month after ‘Mortgage Day’ some networks are finding themselves in a weaker situation than expected and are having to reassess their positions and market strategies.
Martin Bell, head of network at Professional Mortgage Partnership (PMP). explained that since a great number of networks over-estimated the number of ARs they expected to recruit, it will be the smaller networks who will suffer and have to revise their plans in order to survive.
He said: “Pre-‘Mortgage Day’ the market resembles a last-minute rush. There are still good propositions out there and we still expect there to be movement and further recruitment.
“It’s the smaller networks that will suffer, as many haven’t reached their critical mass. It will take six to 12 months for the market to settle down but a lot of networks don’t have this much time.”
Chris May, director of The Mortgage Times Group, said: “We are still getting five to ten ARs per month but for the smaller networks, who have had little success so far, I can’t see anything changing.
“These networks have to consider consolidating or changing their business strategies. By February I expect a number of networks to have done so or even withdrawn entirely from the market.”
He added: “We are actively in the market looking for these types of smaller operations.”
Frank Thurlby, head of compliance at Genesis Home Loans, agreed: “Networks with possibly less than 30 ARs, who have not hit their revenue stream, will have no option but to consider the consolidation option.”
