ARs should consider the DA route, argues Phil Whitehouse, head of The Mortgage Alliance (TMA)

There have been enough comments on the recent goings on at the Mortgage Times without necessarily throwing in my twopenneth worth but the people that really demand our attentions are the poor appointed representatives (ARs) that have been left out in the cold by its recent demise. Also having said that, and without finger pointing or trying the shift the blame from any guilty party, a thought must also be spared for the staff involved who are now having to look for another job amidst rising unemployment levels. But for the context of this article let’s focus on the disgruntled ARs and take a look at their options.

There is the famous phrase ‘one bitten, twice shy’ and when it comes to choosing the right network one bite can often be one too many. At present networks are obviously being quite vocal in vying for the attentions of the plethora of former Mortgage Times appointed representatives. Seizing upon this fact Which Network even set up an event, or a ‘network beauty pageant’ as it was labeled, to showcase five major networks in a bid to help these ARs resume trading. The only problem being with this is that it was recently cancelled because of the snow and icy conditions that have gripped the UK. So the network clamour for ARs continues but this seems to have always been the case.

Looking back to post-mortgage regulation and it was clear to see a battle forming at the top of the mortgage network chain between Mortgage Times and Network Data for the ‘top spot’ in terms of the sheer number of ARs they could get on board. The fact that both of these mortgage network ‘giants’ are no more is quite telling in its own way. So how much trepidation must these ex-Mortgage Times ARs currently be feeling amidst some of the network horror stories that have emerged over the past six months or so? A great deal I would image. Now let me get this straight, there are a number of good networks out there but it is obvious that intermediaries must do their homework before entering into such an agreement. In times like these intermediaries – whether DA or AR – need to consider all aspects of their business very carefully and make sure they align to like-minded organisations by carrying out considerable research on firms they do business with.

Of course it isn’t only networks that have suffered amidst challenging market conditions, far from it, all firms operating in the broker and distribution channels have experienced difficulties in some form or another. Networks may remain a good fit for some firms but now, more than ever, there is even greater support available for directly authorised firms within the market. This support can come in the form of trade bodies, mortgage clubs in addition to a number of good quality and cost effective outsourcing opportunities. Even amidst these challenging times I believe that directly authorised firms remain in prime position to explore new sectors and develop relationships with high quality business partners in order to gain access to additional income streams.

So with this in mind I urge all intermediary firms, especially those ARs currently without a home, to really assess the benefits of being DA and dig deep to find out how to maximise these benefits. There is clear evidence that well backed, structurally sound, professional and well-supported firms operating in both the AR and DA camp will remain in demand as the flight to quality becomes even more pronounced. But as doubt increasingly enters the mind of firms it is vital that they are fully aware of the ability of a good mortgage club or network to offer a real sense of added value. This is easier said than done but it certainly goes to emphasise the importance of the choices that intermediary firms have to make and the diligent way in which they should go about making them.