In an interesting development, a brand new organisation representing mortgage brokers, named ‘The Broker Collective’, was launched yesterday.
The Broker Collective refers to itself as an ‘untrade body’ because it is decentralised and powered by practising mortgage brokers.
The sole purpose of The Broker Collective is to ensure UK mortgage brokers and their clients are fairly treated and democratically and transparently represented.
Brokers who wish to be part of The Broker Collective can join via the official LinkedIn public group. There is no membership fee, as the collective will be powered by its practising broker members and operate only when it feels it needs to.
The Broker Collective’s inaugural campaign is the #24hourpledge, calling on all lenders, before discontinuing any mortgage product, to pledge to provide a minimum notice of 24 hours to all affiliated brokers. Details of the pledge are shown below:
What is the 24 hour product withdrawal pledge all about?
The Broker Collective have given the following details:
We acknowledge that stability, predictability and open communication are fundamental in cultivating a productive, trusting relationship that benefits lenders, brokers and customers alike.
We understand the issues caused by the sudden withdrawal of products, especially in a volatile financial market, which can induce anxiety and stress for brokers who are critical partners in our industry.
In light of these considerations, and in a shared commitment to fostering a more transparent and cooperative industry environment, we would like lenders to voluntarily commit to the following:
- Advance Notice: Before discontinuing any mortgage product, we ask you to pledge to provide a minimum notice of 24 hours to all affiliated brokers. This notice will include pertinent details such as the product being withdrawn, the reason for the withdrawal, and the exact time of the withdrawal.
- Communication: We ask lenders to commit to clear, concise and open communication channels. We request that advance notice is distributed through multiple channels to reach every broker and give them ample time to adjust their strategies and advice for their clients.
- Support: We ask lenders to commit to working collaboratively with brokers to minimise any disruption and ensure a smooth transition for all parties involved.
- Review: We would like to periodically review this pledge in consultation with lenders to ensure its effectiveness and make any necessary adjustments that can further enhance the relationships and trust among all parties.
As Riz Malik, a member of The Broker Collective, comments: “We have launched The Broker Collective to ensure our clients and we, as practising mortgage brokers, are fairly treated by lenders and democratically and transparently represented. Our initial campaign is to ensure lenders commit to a minimum notice period of 24 hours to all affiliated brokers. This notice will include pertinent details such as the product being withdrawn, the reason for the withdrawal, and the exact time of the withdrawal. To this end, we will be calling for 12 lenders of different sizes and with different financial models to attend a digital roundtable, to discuss the issue. We will be in touch with those lenders in the days ahead and will publish the conversation on social media for all brokers to see.”
