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Brokers - tell me about networks

Journalist: John Fitzsimons, Freelance

ended 04. April 2023

Hello brokers

I'd love to pick your brains about mortgage networks. 

What makes a good network? Has that changed over the last few years?

What are the big considerations around joining a network or staying independent? What have been your experiences?

Does the Consumer Duty change the role of networks? Are they going to be more or less attractive to brokers as a result?

 

7 responses from the Newspage community

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Riz Malik
Independent Financial Adviser at R3 Wealth
When my previous principal announced his retirement, I had sleepless nights and was terrified of switching networks. I was concerned about making the wrong decision and ending up somewhere I would later regret. Fortunately, I spoke with a friend who introduced me to her network, and we interviewed for months before I decided to make the change. I was concerned about my pipeline and how I would handle the transition even then. Fortunately, my new network, New Leaf, made the process simple, answered all of my questions, and most importantly, did not put me under any pressure. We've made the switch and haven't looked back. The assistance and support have been fantastic, and there are advantages to being part of a larger network that still knows your name.
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Imran Hussain
Director at Harmony Financial Services
A good network just pays you and takes a slice of the pie, and has restrictions on the type of business you can do; this may suit some advisors not all; A great network will have support in place for small businesses from a compliance function all the way to recruitment to help your business grow they are few and far between so speak before deciding on a network speak to others who are already part of the network you are considering for your business and you must have you eyes open and be honest with yourself around the types of clients you wish to serve prior to deciding on a network as the majority will not allow you to carry out any form of commercial, bridging or asset finance related activities.
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Scott Taylor-Barr
Principal Adviser at Barnsdale Financial Management
The support of a good network is a fantastic asset to an advice business, proving compliance oversight, volume bonuses from providers, training and marketing support. The bulk of the cost to the advice firm is a variable cost, as it is paid as a percentage of business written, so if you write very little then you pay very little. You do, however, have to play by their rules, as they are carrying the regulatory responsibility, which causes problems for some. You can sidestep that by becoming directly authorized, but then all the things included in your network fees you now have to go and buy in yourself; be that through a consultant, club, or by hiring staff to perform that role. Most of these costs are fixed costs, so you are winning if you write a lot of business, but if you have a quiet spell, you've got some big bills to find the cash for. As a general rule of thumb, a small to medium-sized business is well served in a network, as you get larger that balance can shift.
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Jonathan Burridge
Founding Adviser at We Are Money
A good network gives the business autonomy, service and support, understanding that it is a service provider not an employer. The large corporate networks are built for the lowest common denominator, restricting activities to those that represent the least risk to them. There are many offerings out there, take the time to look for a match for your business. Cost is obviously a consideration but remember price is only an issue in the absence of value. Before you commit understand what it will be like when you leave, often leaving a network can be complicated, slow and costly. You need scale to be Direct Authorised and it can be difficult to build the provider relationships needed to provide a competitive offering.
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Austyn Johnson
Founder at Mortgages For Actors
We are with PRIMIS and they have been very good. Overseeing compliance as well as organising CPD training and regular events, they are sweeping the nation for a reason and glad we are with them.
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James Vince
Managing Director at Castle View Finance
We love working with our Network, great support and training. with their focus on supporting us with compliance and our focus on the client experience, it takes a weight off our shoulders.

Their attention to detail and awareness of the latest requirements both compliance and lender allow us to operate within the scope of the FCA guidelines.

Consumer duty is only one area that all brokers need to be ahead off, with many hands making light work as they say.
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Thomas Collier
Advising Director at Advantage Financial Solutions
Having recently become Directly Authorised after being with a network for a few years, I can confirm that our main drivers to go Directly Authorised were simple. Transparency and autonomy. The freedom offered by being Directly Authorised has already allowed major changes which benefit our clients, changes that were would have been unable to make whilst being an Appointed Representative.