Mortgage Times reps left in limbo
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Appointed representatives of Mortgage Times Group have been left facing an uncertain future after the network ceased trading days before Christmas.
Appointed representatives were emailed on December 21 by Mortgage Times management and told that the firm had stopped trading and that advisers were no longer authorised to conduct business under the network. HM Revenue & Customs filed a petition to wind up the company which is due to be heard in the High Court Chancery division on January 13.
One employee told Money Marketing that staff were called into a meeting on December 21 and told the network was about to be placed into administration.
The email to ARs on the same day said: “At the 11th hour, a potential major investor has made the decision not to proceed and we have been left with no alternative but to cease trading.”
Other networks have confirmed they are in talks with Mortgage Times’ advisers.
Personal Touch Financial Services says it is talking to 55 ARs, with some applications already being processed, while Tenet says it expects to take on around 30 ARs in addition to 15 who joined over recent months. Both Home of Choice and Sesame confirm they have been in discussions with Mortgage Times ARs for as long as six months.
The network’s auditors raised concerns over its financial stability in its 2008 accounts.
Throughout the year, Money Marketing heard from a number of ARs who said they were owed commission by the firm. The network repeatedly pledged to repay all backdated commission after a distribution tie-up with Legal & General mortgage club but ARs are still claiming they are owed money.
DR Mortgages adviser Darpan Rhoda says: “I have been owed money for nine months and I doubt very much I will see that.”
The FSA has confirmed that Mortgage Times voluntarily withdrew its permissions. Advisers have argued that the regulator should have acted earlier.
Prosper Homeloans principal Paul McMath left Mortgage Times in December 2008 and says he spent nine months chasing missing commission. He says: “The FSA should have done something sooner. Mortgage Times has affected a lot of lives and some brokers will not come back from this.”
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Readers' comments (2)
Joe | 8 Jan 2010 8:34 pm
Watch out for networks with notice periods longer than 3 months and those that have minimum business levels with financial penalties. Be aware of networks (Intrinsic) that tell you about the fixed monthly charge but do not mention the % of turnover until you are close to signing. Good luck.
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Joe | 9 Jan 2010 4:16 pm
I followed the lead of Mortgage Times biggest and most productive AR firm (they know who they are) and left MT just before they went down. I can't believe that the majority of AR's appear not to have made up their mind about which network to join. I realise that it's a very important decision but don't they have business to write now? If you're interested the network we both joined is based in Ashford, Kent.
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