What make a good mortgage club

Melanie Spencer
August 9, 2022
February 22, 2022
Insights

What should brokers look for in a mortgage club?

In a nutshell, mortgage clubs exist to support their brokers in reaching their full potential. They provide access to products, often exclusively, to ensure brokers have all the tools to support clients and find them the best deal.

But they’re so much more than just a channel to lender products, mortgage clubs also provide essential advice on regulation, technology support and payment packages to ensure procuration fees are paid promptly.

In recent years, we have seen more and more brokers making the switch from Appointed Representative to becoming directly authorised by the FCA. Alongside their newfound autonomy over the running of their business and tailoring the services they offer - these brokers now face the difficult task of choosing the right mortgage club.

Good technology is key

When looking for the right club, a primary concern should be tech. One of the key requirements for success in the broker profession is to invest in the right technology. I can’t emphasis enough the importance of technology and running your whole business on one platform will bring efficiency, speed and security.

I know this having been a broker myself and speaking daily with brokers, listening to what they and their clients want and need. In 2020, we reinvented the mortgage club model to better fulfil these requirements, becoming more technology focused to adopt a hybrid approach that is reflective of the new mortgage market demands.

A good mortgage club will understand the broker, their customer, the lender and how they all interact. A club should be able to provide tools that allow broker firms to engage with new clients as well collaborate with existing clients and retain business while earning money. 

Regulatory support

Mortgage clubs can also provide vital advice for brokers on a variety of topics. One of the most used services finova offer is compliance via a third-party consultancy partner. Regulation and compliance can be a minefield, not just when you initially set up your own business but keeping up with all the changes too.

Increased regulatory scrutiny is expected across the board in 2022, from including the new Consumer Duty, a focus on data management and a focus on vulnerable customers. Ensuring you and your business have the right support to navigate these changes will be vital.

Virtual networking

A problem most advisers have is that we never want to say no to new business – but partnering 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, equity release or bridging finance, some clubs will offer partnerships with experts to support on a range of issues. Instead of declining the business, brokers can refer to an expert in that area via partnerships the mortgage club has developed. That way you get to assist your client with expert advice, while still earning a fee.

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

All directly authorised brokers, especially those who have recently made the switch, should regularly assess their mortgage club and whether it fulfils the specific requirements for their firm. Clubs are there to support brokers reach their full potential, from offering market-leading tech, to providing consultative advice on complex regulations, down to providing access to a good network of service providers to help meet each client need.

20 years’ experience working within Financial Services.