Amid regulatory flux and growing market complexity, mortgage clubs are redefining their role beyond lender access
After more than three decades in financial services, Martin Reynolds has seen the mortgage market weather everything from recessions to digital disruption. But today’s climate, he said, is different.
"There seem to be so many more variables causing the challenges," said Reynolds, CEO of Simplybiz Mortgages. "Even the swap markets used to be fairly predictable. Now they can shift significantly in hours based on news that may not even be relevant."
This volatility, combined with increased regulation and evolving customer expectations, is pushing directly authorised (DA) firms to seek more from their mortgage club partners. And clubs, Reynolds argues, must step up.
Beyond aggregation: a shift in value proposition
Mortgage clubs were once little more than a mechanism for small brokers to access better rates, Reynolds said. "It was literally a sticker on the application form with your club name on it."
Today, the picture is far more complex. "We all have lender panels, protection and GI panels that look fairly similar. The key difference now is what else we bring to the table."
This means a strong focus on training, education and compliance support – areas increasingly vital to brokers navigating a fast-changing market. Technology is also central, but not just for sourcing and submissions. "It’s also about helping firms run their businesses more effectively," Reynolds said.
Advisers need partners, not platforms
While some advisers still engage with clubs on a transactional basis, Reynolds believes the real value lies in partnership. "It’s about engagement and building the business together," he said.
That includes everything from compliance and regulatory updates to practical business support. "Some DA firms are growing rapidly, but many principals are still the biggest writers in the business. They may not have time to focus on cashflow, HR or strategic planning."
In response, mortgage clubs are broadening their support to include areas like business planning, operational tools and management resources. “It’s not about telling firms how to run their business,” says Reynolds, “but about providing tools that help them shape their own direction.”
The importance of horizon scanning
One of the most underappreciated roles mortgage clubs can play, said Reynolds, is horizon scanning. "A lot of smaller DA firms are working in the business, not on it. We can help them anticipate what’s coming – regulatory, cultural, structural – and build support around that."
Event formats, too, are evolving across the sector. Rather than repeating static agendas, many clubs are rethinking topics and structures each year to reflect shifting market trends and adviser needs.
DA vs. AR? It’s about fit, not ideology
In the long-running debate over directly authorised versus appointed representative models, Reynolds is pragmatic. "It’s not about one being better. It’s about what suits the individual or business."
He stresses transparency. "Firms should be shown clearly what a network offers and what a DA model looks like. Then they can choose. The industry mix has remained fairly even for 20 years, and I don’t see that changing."
Mortgage clubs are no longer just about access to lenders. They’re becoming strategic partners, helping firms not only survive but grow. "A good club never stands still," said Reynolds. "It’s about constant refinement, support, and looking ahead to ensure our members are ready for what’s next."
