New mortgage club the DA Alliance will launch on 31 May as the Adviser Alliance.
The new club aims to use advisers’ collective buying power to negotiate better deals with lenders.
Adviser Alliance is the brainchild of London Money director Martin Stewart (pictured) and was mooted last year.
Stewart says: “We are now calling this the Adviser Alliance as we felt the DA Alliance was too restrictive for the market.
“We are seeing many enquiries from people within networks over this initiative, and fundamentally this is all about the broker and less about how they are actually authorised.”
Stewart hit upon the idea after growing frustrated with the level of fees charged by some clubs.
He suggests each broker would pay £500 a year to cover the alliance’s running costs, but would then keep all of the procuration fee quoted on the mortgage offer.
The alliance’s membership will be capped at 250 firms.
Service provider Threesixty has backed the alliance’s launch plans.
Stewart adds: “Clearly this club will not always be the best in breed and, as with the current arrangement, the broker will be able to choose whichever club suits them best for a particular deal.
“We believe there is room for more mortgage clubs to cover the industry and while some advisers may want a more comprehensive service with additional support there will also be those that require one with minimal influence and which will all be about brokers’ remuneration.”
Stewart says the Adviser Alliance will start life as a pure mortgage club, but will expand further.
He says: “Initially we are only looking at a mortgage club offering but we see many inequalities in the market place and huge opportunity for disruption to counter the complacency which I feel smothers the current set up.
“Therefore, over the course of the next 12 months you can expect to see this evolve in to something that puts the broker at the forefront of the advice proposition whilst forging stronger ties with the lenders, the regulator and anyone else who can bring something to the table that will aid the development, income and status of the mortgage broker.”
Adviser Alliance will soon launch a website where brokers can register initial interest and learn more.
Until then, the alliance can be contacted on Twitter at @adviser_club and brokers can email Stewart directly at firstname.lastname@example.org.