Brokers wary of joining networks

Brokers have told lenders they are wary of joining networks come Mortgage Day next year, amid fears that many networks won&#39t be regulated.

The comments were made at a CML conference for mortgage interemediaries last week, where experts from the industry such as Prudential&#39s John Malone gave presentations to brokers on which route they take.

Bill Dudgeon, managing director of TMB, tells Mortgage Strategy that the mood of the room seemed to be more towards intermediaries going directly authorised.

He says: “There were some doubts cast over whether some of the networks would actually gain FSA approval. On the other side of the coin, people were saying to those going directly authorised, if you&#39ve been directly authorised before and you&#39ve had no problems with the MCCB, then it should be okay.”

John Malone, national mortgage manager at Prudential&#39s Mortgage Club, says he feels its finally starting to get through to brokers that regulation wont be a problem.

He tells Mortgage Strategy Online: “In the last six months a lot of people&#39s views have changed. The MCCB as a self-regulator has effectively gift-wrapped thousands of brokers for the FSA, who really are more responsive to statutory regulation. It just wont be as dramatic as has been made out.”

Research by the Ipswich has shown just how positive many brokers are now feeling with only 26% of intermediaries saying they expected their income to drop after Mortgage Day.

Some 43% believed their income would rise and 30% that their income would remain the same.

Paul Winter, director of sales and marketing at Ipswich, says: “It shows that there is a lot more positivity about the impact of the changes than is generally thought to be the case.”