Focus on breadth and depth in stable growth landscape – Mortgage Strategy

As we pass the midpoint in 2025, the UK mortgage and protection network industry continues to develop with measured confidence, indicating a subtle shift in the activity of designated representative (AR) companies.

The year-end to date (YTD) figures point to a broad and stable landscape, with several networks achieving growth through focused recruitment, consultant expansion and new company onboarding, while others compete with net churners.

The number of AR enterprises across the top 30 networks is still significantly consistent, with a marginal net offset of only -1 compared to Q1. However, the mortgage consultant captains in these networks increased by 227 in the second quarter. This demonstrates healthy organic growth and a continued appetite for expanding in existing AR businesses. This shift points to the increasingly efficient use of network models where companies are deepening capacity rather than simply expanding their footprint.

In its initial evaluation of the data, it seems Quilter enjoys a huge growth in hundreds of AR companies. However, a closer inspection shows that these movements stem from internal readjustment between group brands on the FCA registers, resulting in no net change in the number of companies across the network.

First, in the mortgage-only network, outstanding performers have seen significant growth year to date, first with cornerstone financing, with AR companies having the highest net growth of 23, accounting for a 25.6% increase. Similarly, Rosemount Financial Solutions saw a staggering 14.5% increase, while HL Partnership, Connect and Stonebridge saw net growth of 22, 21 and 20 companies, respectively.

On the contraction side, several recognized networks have seen continued declines, most notably open work, with net losses of 22 AR companies, extending 22 AR companies in the second quarter, extending the downward trend, and Primis has also continued to decline since Q1 2023. Primis also experienced a similar net decline, losing 23 companies YTD and 11 companies in the second quarter. In isolated cases, these numbers represent only the percentage term loss for both networks.

Despite the obvious changes in the number of ARs across the industry, a large amount of investment and dating emphasizes the vote of trust in the network model. OpenWork’s £120 million strategic partnership with Bain Capital assessed a 30% stake, highlighting its commitment to expanding consultant support through technology and infrastructure, even in a shrinking AR volume. HL Partnership’s multi-million-pound investment in Haysto further reflects the driving force behind digital innovation in the field. Meanwhile, the appointments of key leaders including Ben Allen, including Managing Director of Correct Mortgage, formerly a Compliance Director, Dan Hobbs has embarked on the role of CEO of New Leaf Distribution, two new strategic directions for a long-standing network.

While direct licensing remains an important avenue for many companies, this network model continues to provide scalable compliance, strategic consistency, and business strength for those seeking resilience in a changing regulatory environment. FCA seems increasingly alert to the retail landscape dominated by numerous independent DA companies. However, its focus and review of the network suggest that they need to be suitable for purpose. However, this also reflects their commitment to the model and has the potential to provide strong governance, equitable consultant oversight and better client outcomes.

For a well-run network, this scrutiny translates into opportunities, and a culture of best practice turns strict rigorousness into long-term dividends with strong and strong partnerships.

Paul Day is the founder and director of online consulting

Read May’s web update here.

*Indicates multiple principals (online) transactions under an online brand
†Indicates that only networks with staking and protection rights
**Specialized in consumer credit
Source: FCA Register
The numbers are correct on July 11, 2025