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Networks that pay ARs to join come under fire

Home of Choice has accused networks that offer appointed representatives money to join of using the in- centive to mask deficient business propositions.

Speaking at a recent HoC roadshow Gerry O’Brien, managing director of HoC, says: “Some networks have tie-in agreements of three, six and 12 months, and ARs have to give the network notice if they want to leave.

“While some networks offer ARs money to join, this is because they have fundamentally deficient propositions. It’s something that was done a lot in the 1990s.”

O’Brien says this may result in questions being raised over whether ARs are being treated fairly.

He adds: “Offering money to get ARs to join networks is dead as a strategy.”

Mortgage Next provides ARs with a disturbance allowance to help overcome the financial strain of severing contracts with principals.

It analyses ARs’ contracts and provides an allowance of up to £25,000 per AR to ensure the transition pro- cess does not leave them at a financial disadvantage.

Justine Tomlinson, marketing director at Mortgage Next, says the scheme is intended to help brokers and make sure that they don’t lose out on any insurance commission that is owed to them.

She says: “One of the biggest problems intermediaries face is networks threatening to cut off their insurance commissions if they leave. This makes it difficult for them to transfer. We are trying to help in this regard.”

HoC also announced that it will shortly be adding Norwich Union to its life panel, taking its number of providers to five. The others providers are Friends Provident, Legal & General, Scottish Provident and Bright Grey.


Chance to see Kylie and help child charity

Solent Mortgage Services in association with Mortgage Strategy is offering Kylie fans the chance to win two front row tickets to see her concert at Wembley Arena on Friday January 5 2007. Kylie Minogue, an ambassador for the National Society for the Prevention of Cruelty to Children, has reserved the tickets and SMS has agreed […]

Salt launches specialist lines

The Derbyshire is launching commercial and buy-to-let ranges through its subsidiary Salt this week.The society has already been dabbling in commercial mortgages through its main brand since February this year. But it hopes to increase its market share by launching ranges through its subsidiary.Salt Commercial and Salt Buy-to-Let will officially be launched at this week’s […]

Buy-to-let investors to take advantage of fixed rates

Lee Grandin, managing director of Landlord Mortgages, the specialist buy-to-let broker says more investors will be moving onto fixed rate deals, following the interest rate rise to 5%. He says: “The effect of this increase will of course be felt by those who invest in residential property. We have already seen how some lenders have […]

Salt launches buy-to-let range

Salt has launched a range of buy-to-let mortgages to the intermediary market.Following its self-certification and sub-prime ranges, Salt is offering a three-year fixed rate buy-to-let at 5.60% and a three-year Bank Base Rate buy-to-let tracker at 5.75%.Salt’s new buy-to-let range offers rates at up to 90% LTV with rental cover requirements of just 115%, based […]


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