Network model is still valid
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The news that two directors of The Mortgage Times Group have already set up another company is the latest twist in a network drama that has swiftly gone from tragedy to comedy. Sadly, there have been few laughs for the appointed representatives of Mortgage Times who had to wait until last week for the news that the firm had finally applied to go into administration.
And there has still been no official announcement about the administration - the firm’s legal representative only mentioned it in passing as she sought to get a 21-day extension for the company to repay its debt to Revenue & Customs.
As we report in our cover feature starting on page 18, the pattern of each network collapse has been depressingly similar. And not surprisingly it’s chipped away at what was already fragile confidence in the network model.
Prior to Mortgage Strategy revealing online last Friday that Mortgage Times directors Paul Carmody and Chris May have already set up another firm our online straw poll asking whether brokers still had faith in the network model showed a figure of 56% in support. Once the story had been placed online this fell to 54%.
But some networks have maintained their stability during the downturn which, lest we forget, has been the worst financial disaster to hit the UK for decades. If being an AR suits your business model it can still be a fantastic way to work as a mortgage broker.
Remember that in becoming an AR you are entering into a business partnership. And if at any time you feel your network’s actions are endangering your business there is a simple remedy - get out as quick as you can.
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