Of growing importance for many brokers when selecting a support group is financial strength and the quality of its infrastructure, signalling brokers are as focused on the long term as they are in meeting their short term requirements. Most want increased certainty and to align with a group capable of providing diversity and longevity, rather than seeking the cheapest deal.
Keith Richards, Tenet’s Group distribution & development director commented: “Further consolidation in the sector is widely forecast and there is already evidence of the strains brought about by the current economic climate in a number of firms. The FSA’s intent to focus more energy on the mortgage market is also creating a trigger for many smaller directly authorised firms to join a well run and capitalised network, where the regulatory infrastructure is provided and responsibility for advice is shared.”
Tenet is sending a positive message to its members that mortgage brokers can survive as long as they are willing to adapt and provide services for a wider range of consumer needs, effectively evolving into non-investment advisers where the arranging of mortgages is just one part of their overall service proposition. The group has seen an 88% increase in protection business since October 2008 and general insurance has also come strongly back on to the agenda as a source of incremental and recurring income.
Keith Richards added: “A strong GI book will enable a firm to build a passive income stream, increasing its future value and providing a greater degree of stability when faced with cyclical change.”
