As interest rates rise and product withdrawals cause increased stress for mortgage advisers, brokers have expressed frustration over the lack of support from existing industry bodies.
Many brokers have reported working extended hours in recent weeks in response to short notice periods on rate withdrawals from lenders.
With thousands of pounds on the line for clients in some cases, some brokers have said they have even eaten into their holiday time to secure deals.
Although not endorsed by all brokers, the furrow in recent weeks led to a small group of mortgage advisers coming together to campaign for mandatory notice periods for rate withdrawals from lenders.
When the Association of Mortgage Intermediaries came out backing this idea shortly after, some in the sector felt it was too little too late.
The disquiet has left some brokers wanting something totally new, with a number saying they would like to see the emergence of a brokers’ union. However, no one who spoke to FTAdviser was willing to lead the charge on this.
As it stands, the mortgage intermediary market is fragmented and there are a number of bodies in existence to support brokers.
The Association of Mortgage Intermediaries acts as a trade body representing the interest of broker firms, while the Society of Mortgage Professionals - which is part of the Chartered Insurance Institute - is a professional body for individual mortgage advisers.
Added to this mix is the Consumer Duty Alliance, which launched this year and the more recent Broker Collective community, which seeks to provide a non-hierarchical platform for brokers to raise and campaign on issues affecting their businesses.
On top of this, the mortgage intermediary space itself is fragmented by nature, with the split between appointed representatives and directly authorised firms and advisers.
Speaking to FTAdviser, one mortgage adviser, Sebastian Riemann, said he was previously a member of AMI but decided to leave the organisation.
“I don’t want to say anything negative about AMI, but the industry as a whole doesn’t have any body that represents us in a true fashion,” Riemann said.
“I’m not taking anything away from AMI, I completely acknowledge some things in the past that wouldn't be there without them,” Riemann added.
Part of Riemann’s issue with the AMI’s representation however, similar to other brokers that spoke to FTAdviser, was the broad spectrum of interests that are represented by the AMI and the perception that the organisation has a “close affiliation to lenders”.
The AMI board is composed of different constituencies - three adviser seats, two regional firm seats, two national firm seats, four network seats, a mortgage club seat, a seat for the Association of Finance Brokers, the chief executive, and five co-option seats.
One broker told FTAdviser that she considered joining the AMI but she was dissuaded from doing so because of this concern that its interests swung in favour of lenders, mortgage clubs and networks, rather than towards those of smaller directly authorised firms.
Desire for change
One of the founders of the Broker Collective, Michelle Lawson, who is the director of Lawson Financial said more ground-level representation is needed for smaller brokers.
“Hence why we have launched the Broker Collective,” Lawson said.
For now, the Broker Collective exists as a private LinkedIn group, but the group plans to expand in the months ahead.
Speaking to FTAdviser, Lewis Shaw of Shaw Financial Services, a fellow founder of the Broker Collective, said it is designed to address issues that matter to brokers, as opposed to issues that people think matter to brokers.
Shaw said of the existing bodies: “It feels as if they are supposed to represent us, but they don’t”.
In Lawson’s view, the AMI does a good job of representing mortgage intermediaries, but she believes it could be better.
“This industry is just relentless in the last few years and there have been so many things going on recently such as consumer duty and the ongoing FCA/FSCS fee debates that this is where their focus has been,” Lawson said.
“Our clubs and networks have to balance relationships and strategy so a true independent force is needed for balance and communications. The last few weeks have been very telling of how brokers feel and a vast majority are stressed like never before and something has to give and needs to be done,” she added.
Responding to some of these concerns raised by brokers, a CII spokesperson outlined the benefit they believe Society of Mortgage Professionals membership holds.
“Members of the Society of Mortgage Professionals are also members of the CII, which is recognised and respected internationally. Joining the SMP is a demonstration of a member’s commitment to their profession, and holding designated qualifications confirms them as a professional to their peers, their employers, and most importantly, to their customers.
“Members also benefit from being part of a wider community, benefitting from local CPD events, training and networking opportunities,” they said.
AMI response
AMI chairperson, Andrew Montlake told FTAdviser that as a broker himself he got involved with AMI because he wanted to see change in the industry.
“AMI does incredible work on behalf of brokers and the team works tirelessly, respectfully behind the scenes, to represent brokers interests and I am so proud to be associated with it. Just because an issue suddenly gets publicity, it does not mean we have not been in dialogue beforehand. We are in a good position as intermediaries because of this."
He said it is important people understand that the AMI is a trade body, not a trade union.
“We are not political, we do not have an agenda apart from that that is published, and all brokers benefit from AMI whether they realise it or not.
Responding to some of the issues raised by brokers, Montlake said he and AMI’s chief executive Robert Sinclair are happy to engage with anyone on a personal basis to discuss their particular issues and bring their concerns to the board and other bodies.
"The AMI board, voted on by members in a process open to all, are exceptional, giving up their precious time, not for personal gain, but for the good of all of us in the intermediary market,” Montlake said.
“Whether it is appreciated by some or not, I and the AMI team will continue to fight for broker firms, to promote our industry in a more forthright fashion, help to educate regulators, the government, and the public about the important role professional advisers play, to encourage a more inclusive and diverse industry, to secure our future, encourage the next generation, protect the existing ones and ensure our industry grows stronger, promoting what hard-working brokers do so well all over the country - looking after our clients.
“On a personal note, I want change which is why I got involved in the first place, and I have never and will never forget I am a broker first and foremost. I suffer like others suffer, like the other practitioners on the AMI board. I watch how the current issues affect the lives and mental health of our brokers.”
He added: “You are being represented, and though sometimes it may appear frustrating, it is only by working together and understanding both sides that you have a chance to effect real change.”
jane.matthews@ft.com
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