It’s only natural that brokers will have many questions about such a unique concept as a subscription based mortgage club.
Over the past few months we have been collating questions from brokers. Here they are, along with our answers.
If you have any questions that we have not already answered, please complete our contact form or email us directly at support@adviser-alliance.co.uk.
£300, for an initial six-month membership.
The fee will be payable on, or around, 30th June 2017 and VAT will not be charged.
If you have questions about this, please email us: support@adviser-alliance.co.uk
Exactly where you would hope; brokers themselves. Who better to talk and share ideas about best practice, innovation and the future than with fellow peers? The seeds of this were sown over a lunch three years ago when two forward thinking advisers met to share ideas and help each other’s businesses to become better and more competitive. They craved unity, transparency and fairness. From that conversation, The Adviser Alliance was conceived.
Any individual who is a regulated adviser.
We accept applications from directly authorised advisers, as well as those who are members of networks. Although, Appointed Representatives will need to check that contractual restrictions don’t prevent them from joining The Adviser Alliance.
Quality of service and support is paramount, which is why we will be limiting membership at launch to 250 individual brokers and controlled expansion thereafter.
We hope and expect not. Every mortgage club has its own merits; we have done something completely different but it may not suit all brokers. The market is big enough for us all.
As far as we are concerned you will be free to elect whatever club you feel is most suitable for any mortgage that you need to place. Exactly as you can today.
Yes. Initially there will be some semi-exclusives available from major and minor lenders. Negotiations will take place on an ongoing basis and the strength of the business in this area will only grow. Rest assured we will not be waiting for the lenders to knock on our door.
For some of us, the same as you; the benefits of a modern mortgage club backed by a guarantee to receive 100% of the net permissible procuration fee and a profit share that is based on the lowest cost base in the market and paid monthly.
At the outset there are no salaries, benefits or bonuses for the people who have helped bring this together and the membership fee simply ensures that the club can operate viably. The Adviser Alliance is about much more than the mortgage club. We are bringing together advisers in the DA community and the real commercial business opportunities are just around the corner. Exciting times are ahead, watch this space.
Absolutely. No restrictions will be in place.
Please follow the instructions under the Registration tab.
This will allow us to capture the necessary information we need from outset. There will be no request for any membership fee until such time we know that enough brokers have agreed to join and we have final confirmation of the lender proposition, though this is looking very promising.
We’ll move on to look at other areas where we can add value to brokers, including a clean and transparent protection panel. Other services will be added. These will be member driven so tell us what you need!
There will be access to a wide panel of lenders. Please see our Lender Panel for further information. As previously stated you are free to use any club, packager or lender you wish should you need to access a lender not on our panel.
Payments will be made three times a month. Two procuration fee payment runs and a profit share payment. In order to keep the costs down and deliver better commercial terms for brokers, service levels have to be simple, yet effective for all.
Day-to-day operational support will be provided by Brilliant Solutions; a partner we are delighted to have on board. Brilliant have some of the best technology in the market and have been paying brokers for mortgage completions since the 1990’s.
We have a highly credible team of mortgage professionals that that have a proven track record in supporting the adviser marketplace.
The concept was conceived by Martin Stewart, a highly experience mortgage broker and owner of London Money. Phil Bray of the Yardstick Agency and Matthew Arena of Brilliant Solutions complete the team.
The Adviser Alliance will be self-funding and self-sufficient, with minimal overheads. The work put in by those establishing the business is being done on a voluntary basis by parties that want to see change in the market with their remit being that any change must be for the benefit of the broker community.
At launch it will not be feasible for most lenders to pay brokers directly though we are seeking to enable this where possible. Not all lenders will permit this as it is a valuable service undertaken by the clubs.
Where lenders cannot make payments directly to brokers, funds will be kept in a segregated account and the sums that some brokers may perceive to be at risk will be limited to the two-week timeframe on payments. The risks are mitigated in the following ways:
Due Diligence: Prior to the establishment of any mortgage club agency with a lender, a business undergoes substantial due diligence. This is then renewed on an annual basis.
Regulatory Oversight: Any mortgage club will need to have the appropriate permissions from the FCA. This further and important oversight that provides protection that was not previously in place prior to the credit crunch.
PI Cover: This will be in place from day one.
Reputational: The parties involved are well respected, high profile figures that are committed to the industry.
Social proof: Unlike other similar businesses, it is our intention to bring together members at events, and by using more accessible methods, such as online forums, videos and webinars.
Oversight: As we are using a partner, we are able to monitor all The Adviser Alliance related activity giving you the guarantee and protection you need.
Direct Payments: We are public about our desire to allow direct payments. This will further mitigate the perceived risk and the fact that we are publicly committed to doing this demonstrates the security of the systems in place.
Profit Share: You will be receiving a monthly profit share. This is simply not feasible if there are any cash flow issues within a business. The subscription model alone removes much of this perceived risk.
There are no plans to offer additional services such as this. There will still be a space in the market for other business models which all members are free to also benefit from should they so wish. This model is designed to give a quality but basic level of service to brokers to maximise the returns to brokers and clearly as a result we cannot compete in all areas.
There will be contracts to sign, they in no way bind or constrain your freedom to place your business anywhere in the market.
Mainly through your annual membership fee which we anticipate will be payable in two parts at six monthly intervals and reviewed annually.
No, it will be a flat fee.
There are no restrictions and this is a light touch model that needs to be as simple as possible. Everybody has access to the same service and benefits regardless. We are looking to deliver a level playing field for brokers.
That’s a fair point, it will.
We would point to the fact that procuration fees will be paid to our partner, Brilliant Solutions, who have a long-term track record in the mortgage market.
Furthermore, the people involved with this exciting project have a lengthy and successful track record in this regard and are highly experienced, visible and forward thinking. We can assure you that the team is credible to both lenders and brokers alike.
The ability of the business to deliver value to firms and individuals will only increase over time giving it a bright future as the membership and services expand.
We have had a fantastic response from lenders and many others within the sector, in particular since we announced the involvement of Brilliant and the full details of the proposition have been released.
You will not be able to cancel but you can choose not to renew at the 6 month and 12-month renewal points.
For The Adviser Alliance to work, we need your support.
Membership will initially be capped at 250 brokers.
Click here to register