A new mortgage advice and protection network has been launched by UK Financial Consultancy Services (UKFCS).
The Collective Mortgage Network will support brokers in offering both, traditional mortgage and protection advice, and specialist bridging and development finance advice.
The network is part of UKFCS, which is directly authorised by the Financial Conduct Authority.
With an aim to have around 100 advisers join in the next 12 months, the network said its goal was to be a “specialist network” rather than the largest.
Brokers will be rewarded for writing specialist business with commissions of up to 1.5 per cent, made possible by the network's affinity with specialist lenders, while ‘everyday’ mortgage advice will offer slightly lower incomes.
The network’s founder and managing director, Danny Carter, said he decided to launch the network to help support other advisers looking to operate across the “entire property finance spectrum”.
Mr Carter said: “Most networks only support their advisers with traditional mortgage advice due to the specialist nature of bridging and development finance and the increased compliance implications this brings, especially around PI insurance.
“We have been operating in this space since 2006 and are in a position where we can help other advisers work across the whole property finance market which we believe makes us a unique proposition for advisers.”
He added: “For many advisers, they have their own clients who need specialist commercial finance but existing networks don’t typically allow you to do it. Others may want to learn more about commercial finance and start to offer it as a product.
“The impact for advisers is significant as they can earn up to 1.5 per cent commissions on specialist loans with Collective because of the preferred panel status we have with many of the lenders.”
According to UKFCS the cost of being part of the network is customised based on the size and turnover of the adviser or firm.
In addition, low fixed charges apply on joining, and on a continuous basis, to cover the network’s operating costs for the member, as well as technology and other services advisers will use.
chloe.cheung@ft.com
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