Network beauty pageant planned for stranded Mortgage Times ARs

22 December 2009 | By Robert Thickett

A network beauty pageant is being organised to help stranded Mortgage Times appointed representatives find a new network and get trading again as quickly as possible.

The brain-child of Which Network, which aims to help advisers find the right network for their business, the aim is to provide Mortgage Times ARs with an opportunity to choose from a wide range of networks in a short space of time.

As Mortgage Strategy exclusively revealed yesterday, Mortgage Times has now been placed in administration and ARs of the firm can no longer use the network’s FSA number to trade.

Currently six networks have provisionally agreed to attend the event which will comprise of a 30 minute presentation by each of the attending organisations with their last 10 minutes being an open Q&A session on their proposition.

Participating networks, venue and date along with further program details will be confirmed in the very near future.

As a result of the bad weather and seasonal restrictions, Which Network says it envisages that the event will be held the first week in January.

Gary Watts, director of Which Network, says: “While we have been able to find stable networks for the steady flow of brokers who have left Mortgage Times over the past few months, it became obvious to us that the eventual demise of the company would leave a lot of ARs stranded and without any route to place their business.

“In order to help these brokers find a network which suits their business we have pulled together leading networks with wide ranging propositions suited to differing business models in the UK along with a premier alternative organisation for brokers who are thinking of going directly authorised.”

For advisers who are not with Mortgage Times, but are looking for a new route to place business a number of places for non-Mortgage Times brokers will also be available.

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Readers' comments (11)

Dan McGeehan | 22 Dec 2009 1:36 pm
Lets hope whatever network the current AR's of MT go to that the FSA do all they can to ensure the authorisation process happens fast.
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Tim A | 23 Dec 2009 8:40 am
As a former AR (for 4 years) I can say this is no surprise. The only trouble is if the remaining AR's leave, then what is there for the administrator to sell? The skimming of life commissions does result in an income, but it will dwindle over time- assuming the life providers are content (and even obliged) to continue paying it.

Shame for the Directors really, Chris May is a very nice guy and I am sure he & the other founders had good intentions. Although they do owe me thousands, which I'm sure I'e just kissed goodbye to.
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Frank Thurlby | 23 Dec 2009 10:19 am
I would urge all ARs to be very careful in making their choice of new principal. Already we have seen the demise of many of the "new" mortgage networks with Netword Data and Mortgage Times being the most significant casualities. It seems that scale is no guarantee of success or even survival. The basic fact is that the network model does not work and may never have worked. With lower business volumes, reducing procuration fees and the disappearance of specialist lending, the rug has well and truly been pulled from beneath mortgage networks.

Before signing up with a new network I would recommend that all would be ARs undertake their own due diligence on the prospective principal. Demand sight of their latest financial accounts and forecasts. Ask to see their business plan. Make sure you are entirely happy. Also take the opportunity to talk to some of their ARs - they should help to convince you whether you are making the right choice or not.

Although the most important thing at moment is to be authorised as soon as possible so that you can write business. The wrong choice could mean that you find yourself in a similar crisis situation sometime in the future, which will cost you all over again.

Best of luck to all Mortgage Times ARs.
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Brian Brotherton | 23 Dec 2009 11:31 am
Once again its the AR'ss that suffer whilst the directors walk away scott free.

Its all very well these neyworks banding together to help people but are they really any better than mortgage times.

Most of them could fold up and walk away with AR'S Money as well.

As far as I am aware there is only one network that holds AR commission under trust therefore offering an element of protection.

Personally I wouldn't trust any mortgage only network as I feel the writing is on the wall for many of them.

AR of mortgage times could potentially setup introducer agreements with colleague until such a time they get reauthorised.

Can't hear much comming from our so called professional bodies.
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John Whyte | 23 Dec 2009 2:10 pm
Not all networks (mortgage only or otherwise) operate in the same manor by 'stacking them high & selling them cheap' by which I mean they have huge amount of AR's not paying a lot in set fees and only earning the network small amount of income as their turnover is not significant.

My recommendation would also be not to rush in just to get authorised but look at the smaller networks where you are not just a number.

Quality not Quantity is what my network has always said (and continues to do so).
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Colin Liddle | 23 Dec 2009 2:28 pm
Appointed Reps are badly-treated all round. They get poor deals from their Networks who manage to walk away with the
commission the AR s have earned when they fold.AR s can't trade for 3 months when
they switch Networks...which is scandalous.
The FSA strongly favour banks in spite
of the damage they cause..Why do the top bankers earn so much for doing so little?
What a carve up.

Mortgage brokers are mugs.
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Ian McIver | 23 Dec 2009 3:11 pm
It is quite apparent to me that there is a theme here - Network Data, Mtg Times, PNG etc - ALL mortgage networks.

It is not rocket science to email the various networks and just ask for an overview or send them each a proforma asking for answers to certain questions i.e. is my commission protected if you go into receivership?, are you independent?, any hidden fees? etc

Ian McIver MD
The Whitechurch Network
ianmciver@whitechurchnetwork.com
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Phil W | 23 Dec 2009 5:13 pm
I don't certainly think networks are dead, but I'm not making a decision who to join before I've spoken to at least 4 networks.

There's good and bad and I'm making sure I know which is which before I jump!
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Ian | 23 Dec 2009 10:43 pm
Yes Im really sorry to see them go, as previous poster said Chris May and team are great guys, and I can only wish Chris the best (former TMTG AR with no hard feelings)
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Bob Singh | 29 Dec 2009 5:05 pm
It's no secret that I have been a fan of Networks and I stick by that because there IS a place for them in the market-place. When the chips are down they do help. Where things tend to go wrong is where anyone and every-one thinks they can form a network without having sufficient personnel,infrstructure and financial strength that is required.

Why does the FSA not do us all a favour and grade remaining Networks, big and small, according to their balance sheet and solvency so AR's know what sort of Principal they are with or considering joining. eg AAA etc

Let there be a ban on new networks and let the consolidation continue! We need fewer networks that are good and not dozens that don't quite make the grade.

My new years resolution?

keep in touch with my clients, ask for referrals,Charge fees, cross sell, take life commission on a drip, minimise costs, set targets and budget ahead. Nothing new i know but how soon we forget?

My heart goes out to those afflicted by this demise but good brokers dont give up.

Happy New Year
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