“Which Mortgage Network Should I Join?”- Answering Brokers’ Questions

It’s no wonder many brokers are asking themselves which mortgage network they should join. In the current market, being a part of a mortgage network could be crucial for many advisors, and their underlying borrowers.

Simply put, mortgage networks offer a layer of protection for their brokers. This can make all the difference in the current market where both providers and borrowers are under increasing legislative scrutiny.

The consumer duty[1], for example, is placing financial firms under added pressure to put their customers’ needs firsts, with there being harsh penalties for those who fall foul of the rules. Property investors and landlords also have eyes on them.

A Renters’ Rights Bill[2] is in the works, which will have far reaching ramifications for the BTL market. Among other things, it’ll strengthen tenants’ rights, create minimum legal standards for property conditions, and generally force landlords to up their game.

All of this may lead borrowers to want the utmost protection and security throughout their investment journeys. This should give brokers plenty food for thought. To help, this blog will go some way in answering the question of “which mortgage network should I join?”.

What Is a Mortgage Network and Why Do They Matter?

A mortgage network is an organisation that’s authorised by the FCA, and accepts full liability on behalf of its brokers and advisors. This ensures the operations of an advisor – public messaging, any advice given, coverage etc – are all FCA compliant.

A broker can generally operate independently, or be a part of a mortgage network as an appointed representative[3]. Whether this is the right choice for them will depend on their circumstances. But those who are not part of a network will solely be responsible for their own compliance and adhering to FCA guidelines.

While support with FCA rules is one of the main reasons brokers tend to join networks, there are further benefits that could be applicable. Mortgage networks can help with promotions, customer relations, management, software provision, and more.

From a provider perspective, lenders can join mortgage networks’ lending panels. This means that lenders’ range of products and services will become more accessible for the network’s existing broker base.

Brokers themselves appear to appreciate the benefits mortgage networks can provide. The number of appointed representatives across the main networks prevalent in mortgages rose by 132 in H1 2024, according to Network Consulting[4].

Key Factors to Consider When Choosing a Mortgage Network

Brokers asking themselves which mortgage network they should join need to ensure the organisations they’re looking at are suitable for their objectives, and clients. Specifically, they could explore a network’s support options, what lender access it has, and its fee and commission structure.

The latter is particularly important. Mortgage networks do not offer their support for free, and there are often commission splits involved. Brokers will need to ensure these costs don’t eat too much into their revenues.

They should also keep their client’s end-goals in mind. Some brokers may primarily deal with BTL investors, while others may work with fix-and-flippers. It’s important to choose networks that have products and expertise that match these kinds of areas.

It can be hard to gauge all this ahead of actually joining a network, however. But there are certain things brokers can do to help narrow down their options. They could read up on reviews/testimonials a network has to assess its credibility.

And of course, networks themselves can be reached out to directly. They’re likely to happily answer any questions brokers have, while some may even have tools that allow brokers to test its capabilities. This could include access to digital tools, demos, etc.

Top Networks in the UK

It’s important to note that there is no such thing as the “best” network. Every network will have its own way of doing things, along with individualised target markets. The best network for one broker may be completely different to another’s.

Still, one way to access how well a network may be performing generally is to look at the total number of appointed representative firms that fall within its remit. To that end, Network Consulting[5], utilising FCA data, created a “Network League Table” for H1 2024. The top 20 are as follows:

1. St James’s Place Wealth Management Plc
2. Primis
3. Quilter
4. Stonebridge Mortgage Solutions Ltd
5. Openwork Limited
6. HL Partnership Limited
7. The Right Mortgage Limited
8. 2Plan Wealth Management
9. Sesame Limited
10. The On-Line Partnership Limited
11. Connect IFA Ltd
12. New Leaf Distribution Limited
13. Mortgage Advice Bureau Limited
14. Sense Network
15. Mortgage Intelligence Ltd
16. ValidPath Limited
17. Best Practice IFA Group Limited
18. White Rose Finance Group Limited
19. TMG Direct Limited
20. Beneficial Limited

Many of the firms in this list are already partnered with Market Financial Solutions. So far, we have joined the following panels:

• Brilliant Solutions
• In Partnership
• HL Partnership
• New Leaf Distribution
• Paradigm Mortgage Services
• TMA Club
• Mortgage Advice Bureau
• SimplyBiz Mortgages
• PMS
• Dynamo for Intermediaries
• Legal & General Mortgage Club
• Optimum Commercial
• TMG The Money Group
• Finova
• White Rose
• Sense Network
• Stonebridge
• The OnLine Partnership
• Connect IFA
• Synergy
• Commercial Finance Brokers UK

When brokers have answered the question of “which mortgage network should I join?”, we want to hear from them. We’re happy to work with appointed representatives, independent brokers, as well as direct borrowers.