What should brokers look for in a mortgage club?


“Regulation and compliance can be a minefield, not just when you’re initially setting up your own business, but keeping up with all the changes.”



But they’re more than just a conduit to lenders’ products, mortgage clubs also provide essential advice on regulations, technology support and payment packages to ensure prompt payment of power of attorney fees.

Over the past few years we have seen more and more brokers move from appointed representatives to becoming directly authorized by the FCA. In addition to their regained autonomy in the management of their business and the adaptation of the services they offer, these brokers are now faced with the difficult task of choosing the right mortgage club.

Good technology is the key

When looking for the right club, the main concern should be technology. One of the key requirements for success in the brokerage profession is investing in the right technology. I cannot stress enough the importance of technology and running your entire business on one platform will bring efficiency, speed and security.

I know this, having been a broker myself and having spoken with brokers daily, listening to what they and their clients want and need. In 2020, we reinvented the Mortgage Club model to better meet these demands, focusing more on technology to take a hybrid approach that reflects new mortgage market demands.

A good mortgage club will understand the broker, their client, the lender and how they all interact. A club should be able to provide tools for brokerage firms to engage with new customers, collaborate with existing customers, and retain business while earning money.

Regulatory support

Mortgage clubs can also provide essential advice to brokers on a variety of topics. One of the most used services in the finova offering is compliance through a third-party consulting partner. Regulation and compliance can be a minefield, not just when you’re initially setting up your own business, but keeping up with all the changes.

Increased regulatory oversight is expected in all areas in 2022, including new Consumer Duty, with a focus on data management and with a focus on vulnerable customers. Ensuring you and your business have the right support to navigate these changes will be critical.

Virtual networking

One problem most advisors have is that we never want to say no to new business – but associating with the right club can mean you don’t have to. If presented with a client who wants advice in an unfamiliar area, for example, stock release or bridge financing, some clubs will offer partnerships with experts to help with a range of issues. Instead of refusing the activity, brokers can refer to an expert in this field through partnerships that the mortgage club has developed. This way, you help your client with expert advice, while still earning fees.

Mortgage clubs also have referral services that brokers can use, such as general protection and insurance, conveyancing, and surveying. They can also help with other aspects of running a business such as marketing and communications.

All directly licensed brokers, especially those who have recently made the switch, should regularly assess their mortgage club and determine if it meets the specific requirements of their business. Clubs are there to help brokers reach their full potential, whether it’s offering state-of-the-art technology, providing advisory advice on complex regulations, or providing access to a good network of service providers. to meet the needs of each client.