Low broker morale boosts non-regulated
Connect Mortgage Club, part of the Connect Group, believes high profile network collapses and the burden of compliance for small directly authorised firms is driving ARs and DAs to look for other options.
Kevin Ward, head of business development at Connect Mortgage Club, said its new facility for non-regulated advisers to transact buy-to-let, commercial and bridging business by becoming an AR of Connect’s non-regulated network is proving popular with brokers.
He said: “Brokers are keen to offer customers proper service but are tired of the growing bureaucracy, the precarious financial position of many networks and cost of complying with growing regulatory demands.”
Ward explained Connect Mortgage Club has decided to concentrate on business streams like buy-to-let, commercial and bridging, which it said are attractive to brokers and their clients because they can transact business in specific areas where the returns are good. And he added through its non-regulated network, equally importantly, the costs of compliance are realistic.
However unregulated mortgage activity is currently under review in Europe at present, where the European Commission argues that any mortgage secured on a residential property should be subject to the same scrutiny and controls, which would capture buy-to-let and some bridging loans within regulated mortgage activity if it is approved.
But Ward added: “We also have facilities through our regulated arm to handle any kind of regulated enquiries from clients of our ARs.
“So access to a whole of market offering for buy-to-let, commercial and bridging and the opportunity to generate income from any regulated business through referral to our regulated advisers, makes for a serious alternative proposition for mortgage and other finance specialists. Put against the uncertainty surrounding the regulated network model and the escalating costs of direct authorisation, particularly for small firms, our offering has alot to offer specialist finance brokers.”