A period of consolidation is now upon the mortgage distribution space as the economic impact of the past three years and increased regulation impacts firms, according to Crystal Specialist Finance’s Jason Berry (pictured).
Yesterday Tenet confirmed it would be closing its networks after over 30 years of trading. The closure sees 231 advisers move to LSL’s PRMIS mortgage network.
Paul Day, managing director of Network Consulting, lamented the closure as a “sorry day” for the sector.
And Tenet has not been alone in disposing of its network. Last month Cardiff-based mortgage broker business TBMC shuttered operations.
The decision followed a comprehensive review by parent business Paragon Bank. At the time Paragon said TBMC was no longer considered to be strategically core to the company’s distribution network.Â
Berry, group sales director at Crystal Specialist Finance, said more consolidation in the distribution space could be in the offing.
“Although we can be optimistic about the future opportunities which exist within the specialist lending marketplace it is not a surprise to see consolidation and market exits within the distribution space,” said Berry.
“The past three years have been incredibly challenging for all of us and any highs have certainly been tempered with unwanted lows.
“Undoubtedly, the onset of new consumer duty responsibilities means increased accountability around client outcome plus the ability to serve client’s needs through a continuous lifecycle which must be evidenced.
“For all those companies who provide support services to advisers only the well-capitalised and ones with the very best propositions will survive and prosper.”
