Connect Mortgage Club has concluded that the increase in demand for its non-regulated offering is due to failures of AR networks and the compliance burden for DA firms.
Kevin Ward, head of business development at Connect Mortgage Club, believes the firm’s new facility for non-regulated advisers to transact buy-to-let, commercial and bridging business by becoming an AR of Connect Mortgage Club’s non-regulated network is proving popular with brokers, who are keen to offer customers proper service but are tired of the growing bureaucracy, the precarious financial position of many networks and cost of complying with growing regulatory demands.
He added: “The Club decided to concentrate on robust business streams like buy-to-let, commercial and bridging, which were attractive to brokers and their clients and it seems as if we have really struck a chord with intermediaries.
“We can offer them a business model, which allows them to transact business in specific areas where the returns are good and through our non regulated network, equally importantly, the costs of compliance are realistic.
“At the same time, we have the facilities through our regulated arm to handle any kind of regulated enquiries from clients of our ARs. So access to a whole of market offering for buy-to-let, commercial and bridging and the opportunity to generate income from any regulated business through referral to our regulated advisers, makes for a serious alternative proposition for mortgage and other finance specialists.”
He added: “Put against the uncertainty surrounding the regulated network model and the escalating costs of direct authorisation, particularly for small firms, our offering has a lot to offer specialist finance brokers.”