Joining a Mortgage Broker Network

Many self-employed mortgage advisers find themselves mulling over whether to join a network to further their careers. Such a move has pros and cons to consider, and it’s important to weigh up all of the alternatives too.

Here you can read up on the benefits and drawbacks of a mortgage network, and learn why Echo Finance can offer the same perks without many of the pitfalls.

What is a mortgage network?

A mortgage network is an organisation that is authorised by the Financial Conduct Authority (FCA) to act as an umbrella group for self-employed mortgage advisers and firms. They can offer regulatory and compliance support as well as other services to their members.

The main benefit of joining a network is that advisers and brokerages can operate as appointed representatives (ARs) and don’t need to manage their own regulatory matters.

Other perks of joining a mortgage network include:

• Access to the network’s panel of lenders

• Training and development support

• Marketing resources

Networks offer plenty of support for less experienced mortgage brokers, but keep in mind that networks either charge a fee for membership or take a split of your commission.

Echo Finance offers a great alternative to a mortgage network as our brokerage can provide many of the same perks without the drawbacks of advising as an AR.

Should you join a network?

Networks can be a good option for inexperienced brokers who don’t want the burden of dealing with their own compliance or regulatory responsibilities, but there are drawbacks to networks too, namely reduced autonomy and having to pay fees or a commission split.

At Echo Finance, we consider ourselves a better option than a network for experienced advisers as we offer many of the same benefits in a directly authorised (DA) environment.

If, however, you want to find out more about the advantages and disadvantages of signing up with a mortgage network, we have summarised them in the table below.

Why Echo Finance is better than a network

Echo Finance is not a network as we don’t have multiple appointed representatives (ARs) under us, which is advantageous to brokers who choose to join us in several ways.

All of our advisers are individuals and this gives us greater control in areas such as our sales processes and recruitment, allowing us to scale up as and when we want to.

As a mortgage broker, this translates to benefits that you wouldn’t have in a network:

• You can just focus on selling

• Nobody takes a cut of your commission split

• We’ll provide all your leads for free (if you need them)

• We are on panel with every lender and insurance provider in the UK

• All of our systems and processes are fully tested and established

• You don’t need to handle any recruitment or training

Joining Echo Finance means you’re advising in a directly authorised environment, and this can be more lucrative than working as part of a network.

According to the latest census from recruitment firm BWD, DA advisers in the UK earn over 19% more than brokers who operate in a network.

What makes us better than an AR firm?

Our senior mortgage advisers and leadership team would never recommend working for an appointed representative (AR) firm due to the limitations you’ll encounter.

A better option is for advisers to become an AR themselves or work for a directly authorised (DA) firm, like Echo Finance. This way, you will be cutting out the middleman when it comes to receiving your income.

When you work for a DA firm like us, there is nobody taking a cut of your commission before it comes your way, which would not be the case if you were working for an AR.

Who is the best mortgage network in the UK?

‘Best’ is subjective as each mortgage network in the UK offers something different. While one might be a good option for newly-qualified advisers, they might lack the resources to cater for the needs of mortgage experienced mortgage brokers.

Below are some of the best known mortgage networks in the country, but before you reach out to any of them, we recommend speaking to us first to hear firsthand about some of the benefits of joining Echo Finance rather than a mortgage network.

• St James’s Place Wealth Management Plc

• Primis

• Quilter

• Stonebridge Mortgage Solutions Ltd

• Openwork Limited

• HL Partnership Limited

• The Right Mortgage Limited

• 2Plan Wealth Management

• Sesame Limited

• The On-Line Partnership Limited

• Connect IFA Ltd

• New Leaf Distribution Limited

• Mortgage Advice Bureau Limited

• Sense Network

• Mortgage Intelligence Ltd

• ValidPath Limited

• Best Practice IFA Group Limited

• White Rose Finance Group Limited

• TMG Direct Limited

• Beneficial Limited

• Brilliant Solutions

• In Partnership

• HL Partnership

• New Leaf Distribution

• Paradigm Mortgage Services

• TMA Club

• Mortgage Advice Bureau

• SimplyBiz Mortgages

• PMS

• Next Intelligence

• 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

If you’re thinking of joining a mortgage network, get in touch with us to hear about how we can offer all of the same benefits and services without the drawbacks.