Is it Better to Work Under a Network or as a Directly Authorised Mortgage Broker?

Is it Better to Work Under a Network or as a Directly Authorised Mortgage Broker?

One of the biggest questions mortgage brokers ask is whether to join a mortgage network or become directly authorised (DA). It’s a career-defining decision that impacts earnings, business growth, and day-to-day operations.

I’ve worked with countless brokers who thrived in both models, but I’ve also seen many struggle because they didn’t fully understand the implications of their choice. If you make the wrong decision, you could find yourself trapped in an arrangement that stifles your income or drowns you in compliance headaches.

So, which option is best for you? Let’s break it down.

What Happens If You Choose the Wrong Path?

I’ve seen brokers get stuck in networks that charge high fees but provide little in return. They feel like they’re working hard just to line someone else’s pockets. On the other hand, I’ve worked with DA brokers who underestimated the burden of compliance and found themselves spending more time on admin than actually advising clients.

Making the wrong choice can mean missing out on income, growth, and ultimately, the career you want. So let’s explore both options in more detail.

What Is the Difference Between a Mortgage Network and Direct Authorisation?

• Mortgage Network (Appointed Representative - AR): You work under an established firm’s FCA authorisation. They handle compliance, offer support, and sometimes provide leads.

• Directly Authorised (DA): You apply directly to the FCA and take full control of your business, including compliance, lender relationships, and branding.

Now, let’s look at the pros and cons of each.

Do You Need More Control or More Support?

A mortgage network provides structure, compliance handling, and even marketing support. If you’re new to the industry, this can be invaluable. However, it also means restrictions—you’ll need to follow their rules and pay them a cut of your commission.

Going DA gives you full control. You can choose your own lenders, set your fees, and grow your brand on your terms. But with that control comes responsibility—you’ll need to handle compliance, admin, and lead generation yourself.

📺 Related Video: How to Register with the FCA as a Mortgage Broker

Do You Prefer Financial Security or Unlimited Earning Potential?

With a network, you often give up a percentage of your commission in exchange for support. This means lower initial costs but also lower potential earnings.

Going DA means keeping 100% of your commission, but you’ll also need to cover all expenses—FCA fees, insurance, CRM software, and compliance support. If you’re not financially prepared, this can add stress.

📺 Related Video: How Much Does It Cost to Become a Mortgage Broker?

How Much Compliance and Admin Work Can You Handle?

Compliance is a crucial aspect of mortgage brokering. Networks handle this for you, allowing you to focus on clients. However, this also means following their rules.

DA brokers are fully responsible for compliance. If you underestimate the time and effort involved, it can quickly become overwhelming. You may need to hire a compliance specialist to ensure you’re meeting FCA requirements.

📺 Related Video: How Mortgage Brokers Can Stay Compliant (Without the Headaches!)

Where Do You See Your Mortgage Business in 5 Years?

A network can help you scale in the early stages by providing leads and reducing admin tasks. However, over time, commission splits may limit your growth.

DA brokers have the freedom to build their own brand, generate leads, and grow their business without restrictions. If you have a clear long-term vision, DA might be the best option for maximising your income and independence.

📺 Related Video: What to Expect in Your First Year as a Mortgage Broker

How Do You Decide Which Is Right for You?

The best choice depends on your experience, risk tolerance, and long-term goals. If you’re new, a mortgage network offers support and stability. If you’re confident and ready to take on the challenges of running a fully independent business, DA gives you the freedom to scale without limitations.

Lesson for Business Growth: The most successful brokers think long-term. Whether you choose a network or direct authorisation, ensure your decision aligns with your ultimate business goals—not just short-term convenience.

📺 Related Video: Can You Become a Self-Employed Mortgage Broker?