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Value of mortgage clubs

ended 01. April 2026

Our attention was caught by this post on LinkedIn by a broker about mortgage clubs. On mortgage clubs, broker David Tasker said:

"I want to talk about Mortgage Clubs. ​​​​​​​​​​They don’t source my cases, they don’t assess affordability and they don’t answer the phone at 9pm when the needle on my client’s anxiety dial is flickering like crazy. What they do is sit between the broker and the lender, clip the proc fee, and call it a service. It’s like being asked to pay a fee to use a road that we built.


The justification is always access to exclusive rates or enhanced proc fees. Both of which exist largely because the clubs negotiated them upward from a baseline they helped to keep low in the first place. We have been sleepwalking into this arrangement for years. There must be a better way."

What are your thoughts on mortgage clubs? Good, bad or ugly?

4 responses from the Newspage community

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Michelle Lawson
Director at Lawson Financial
Value is subjective and will also depend on how you use something as to the value it brings. My experience is nothing but positive with my club. Paradigm have been a great support to me and my business for many years- this has been worth its weight in gold as a small fish in a big pond. The training events, the knowledge, the compliance assistance, consistent point of contact, voice or reason etc are a huge value in my opinion as being a broker can be a lonely world. Paradigm also have an annual profit share rebate scheme so they do pay pack as well. Paradigm do champion the broker community and do well as a voice of support so if you don't feel that you are either with the wrong club or not using the one you have to its full potential.
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Bob Singh
Founder at Chess Mortgages
Great point !

Mortgage “Clubs” had some sort of function other than fee collectors when they offered “exclusive” deals which were significantly better than direct business.

I rarely see an “exclusive” on my sourcing system

For Clubs that also offer a cash back ( Paradigm ) and compliance/training/ CPD support then that could mildly justify their existence

Lenders systems don’t always allow the broker to choose a payment route for each application - they prefer us to nominate one at outset and stick to it to ease administration

Directly Authorised firms should be able to choose their Club with all lenders but better still pay the gross fee to the firm directly unless it’s an exclusive deal which they have negotiated






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Justin Moy
Managing Director at EHF Mortgages
In my experience, lenders typically provide the same net procuration fee whether I get paid directly or through a mortgage club, but I can be paid within 48 hours of completion with my club, unlike lenders that can take over a month to pay direct, so working with the right Mortgage Club can do nothing more than help cash flow for smaller brokerages such as ours, and they do offer extra services such as webinars, case placement support, and discounts to some of the tech needed in the day-to-day function of broker businesses.
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Rohit Parmar-Mistry
Founder at Pattrn Data
Mortgage clubs can add real value, but only when the value is tangible and transparent.

At their best, clubs use scale to negotiate packaging, service levels and better outcomes for borrowers, and they invest in technology, compliance support and lender relationships that an individual firm cannot easily replicate.

At their worst, they become a tollbooth: another layer that captures a slice of the fee without improving speed, certainty or advice quality.

The test is simple: if the club disappeared tomorrow, would the broker lose capabilities they rely on, or just lose a margin split?

If exclusive rates exist, disclosure should be clear: what is truly exclusive, what is simply re-badged, and how proc fees and incentives shape distribution.

My question to brokers is: where do clubs measurably reduce friction for your clients, and where do they merely re-route it?