Be wary of networks promising the fast-track route post 'Mortgage Day'
In the last few weeks, several networks have started to woo potential members by promising to fast track their applications.
The impression created in the market is that these networks have a close working relationship with The Financial Services Authority (FSA) and are able to influence the regulator when it comes to authorising an AR application.
PMN believes this approach could lead to an intermediary making the wrong choice when it comes to selecting an appropriate network support partner.
Explains PMN managing director Dale Knight: “At best, it is irresponsible on the part of the network to paint a picture to a potential member that suggests their AR application is going to be given preferential treatment by the FSA. At worst, it’s a case of signing a member up under false pretences. The dividing line between the two is very thin indeed.
“I urge anyone who is interested in joining a network to bide their time and take a hard look at the opportunities available to them. The reality is that no network can bring any influence to bear on the time it takes to process an application for membership.
“Any network that suggests they can fast-track anything is either behaving foolishly or is desperate to achieve a certain level of business.”
PMN is also urging ARs to be cautious of any organisation that is offering the promise of guaranteed authorisation.
Added Dale Knight: “Only the FSA can offer anything like a guarantee. So for mortgage networks to start talking about guarantees if an AR signs up to their offering is damaging to all parties.
“My advice to anyone who comes across a network offering this kind of commitment is to steer well clear of them. There is a strong likelihood that the network will fail to deliver on its promises – and the intermediary will be left rueing their decision to sign on the dotted line.”