Service provider Threesixty has backed the launch plans of equitable mortgage club The DA Alliance.
Threesixty managing director Phil Young says he wants to “support and help implement” plans to launch the new club, which aims to deliver 100 per cent of procuration fees to its members.
Young says he is looking to promote the club to Threesixty members.
Around 120 brokers, controlling lending of £2.3bn,have already showed interest in signing up to the alliance, which is the brainchild of London Money director Martin Stewart.
Young says: “Our research shows that mortgage advisers can lose up to 9 per cent of the procuration fee to the mortgage clubs. That’s a significant proportion of the fee that fails to make its way home.”
“I’ve spoken to several mortgage advisers recently, who like the idea of a flat fee structure adopted in order that they, as business owners , can deploy their capital in different areas be it marketing or support staff.
“With access to over 7,000 advisers, of which 20 per cent are active in the mortgage market, we are looking to support and help implement the DA Alliance ideas.”
Young adds the mortgage industry does not work as well as it should for directly-authorised brokers.
He says: “I’d like to see that imbalance addressed and this initiative would give us the perfect platform to evolve the sector.”
Stewart says: “As a quest for greater transparency sweeps the world, we believe the DA Alliance is the right solution, at the right time.
“We continue to be delighted by the support we have received from directly-authorised brokers. Phil’s support brings the day we launch the DA Alliance one step closer.
“We will continue our discussions with mortgage brokers and other interested parties and make a further announcement in the coming weeks.”