Q2 sees AR sector shrink as 72 fly the network nest
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More than 70 appointed representatives abandoned their networks in Q2 2010, with Personal Touch Financial Services losing 44.
Mortgage Strategy’s latest quarterly round-up of AR networks compiled by Which Network shows that 72 ARs jumped ship in Q2.
PTFS gained 36 ARs but lost 80, resulting in a net loss of 27.
On April 1 PTFS introduced a £125 flat fee for ARs.
Dev Malle, sales director at PTFS, says: “We’ve seen a lot of natural exits owing to shrinking firm sizes. Changing our monthly rate must have had an effect but as it’s fairly low this won’t have been very big.”
He says the network is also seeing a lot of ARs becoming business writers.
He adds: “I don’t think we’ve been losing ARs to other networks.”
Pink Home Loans gained 13 ARs but lost 41, making a net loss of 27.
Neil Hoare, sales and marketing director at Pink, says some of its ARs have teamed up to cut costs.
Openwork gained 23 ARs, the highest increase of any network, with Financial Limited gaining 14.
First Complete makes its first appearance with 318 ARs. But it lost 42 ARs during the period.
Speaking to Mortgage Strategy this week Mark Graves, development director at LSL Financial Services, says the network is on the prowl to acquire other networks.
He says: “We always look at opportunities to grow. First Complete is strategically the focus of financial services growth in LSL.”
Graves also reveals details of the moments that led up to the acquisition of Home of Choice.
He says: “No doubt HoC’s loans were crippling but it would be wrong of me to say this was the only reason the business was not progressing or it would be in profit now.”
