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Analysis of The Network Tables for the First Half of 2009

The network League table produced by independent Network Consultants, Which Network Ltd, gives a view of the total number of AR’s held by individual networks at the end of June 2009.  It also gives the numbers joining and leaving these networks for the six months up to that date.

The information is taken from the FSA register, and is accurate in the main, although we have noticed inaccuracies, caused by the time taken to update entries, firms dual registered, and even in some cases firms being registered twice with the same network (I think, do as I say, not as I do is the phrase that comes to mind).

The last published table in January 2009 covering quarter 4 of 2008 showed 9,510 registered firms and we now see that there are only 9,048, so it would seem that anecdotal evidence suggesting despondent brokers are leaving the industry in huge numbers is correct, however from feedback we have received from brokers, it is also apparent that a number believe there is safety in numbers, and are giving up their independence to join larger firms as Registered Individuals (RI’s).

What we must also consider is that a good 450 firms have been removed from the register with the demise of Network Data Ltd, strangely Mortgage Broker Services Ltd (MBSL) who were part of Network Data Holdings are still showing as active on the FSA register, however to improve the accuracy of the table we have not included MBSL in the figures. Some of NDL’s former firms have now returned and appear on the register with their new principal, hopefully as a result of a measured assessment and not a knee jerk or panic reaction. There are also a number of the NDL ARs’ who have yet to resurface,  probably reading Mortgage Strategy pondering what move to make, or stuck in an application bottle neck, yet to be approved and appointed

Finally, Direct Authorisation is being considered by many having had their fingers, or more accurately pockets burnt with the catastrophic crash of some networks. But in statistical terms the overall effect of this is negligible as we are seeing just as many enquiries of Directly Authorised firms coming in the opposite direction, so this migration could end up with a neutral effect. It would not be surprising if by the end of this year, the number of firms registered is back above the 9,300 level.

Due to recent events amongst the network community and the industry’s general feeling of vulnerability, rumours are rife, and at this point it is very difficult to differentiate fact from fiction; is there no smoke without fire or is a story the total fabrication of some self interested party?  What can be said however is there have been some great changes over the last six months with amalgamations, takeovers and liquidations involving some major players, and looking forward we have no reason to believe this instability will not continue.

Turning to the data from the table now, Sesame stay in top place despite losing 89 firms as they demonstrated a net gain of 100 firms, undoubtedly some of these are from the Thinc brands. Openwork now sneak second place from Personal Touch Financial Services who gained 170 AR’s but also lost 128 firms giving a net gain of 52 overall. Network Data drop out all together and as previously stated MBSL still show 169 registered firms some of whom are also registered with other principals. Vision show the largest net loss of all with a net difference of minus 85 and lose places to both Intrinsic (4th) and Pink Home Loans (5th) which now includes the former BDS firms.  Looking further down the table there are noted increases in numbers of firms registered  with Home Loan Partnership, New Leaf Distribution and MINT all showing an increase of between 22% and 25% over the six month period.

Other than the Legal and General Partnership service, all major losses are due to shifts in ownership and control, namely GHL, Thinc Network Services, Thinc Assured Network and Premier Network Group.  As we have previously mentioned, many industry commentators have stated that further consolidation must take place giving a more stable view of the top twenty networks; this will only become apparent given time.

Click on this bar to refer back to the table at any time.

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