HOF offers intermediaries the chance to become licensees of the firm. The licensees will be able to offer consumers mortgage and general insurance products and can earn commission on other services such as pensions and investments.
Jason Gardner, managing director of HOF, explained: “We believe we have developed a real alternative to the traditional network model. We intend to make HOF a leading financial services brand by being market focused in a way that most intermediaries would like to, but couldn’t on their own.”
Steve Royal, director of Ethical Mortgage Solutions said: “It appears that they have a wide range of products. I am pleased that other organisations are recognising franchise structures.”
Rob Clifford, managing director at Mortgageforce was sceptical. “Many licensed and franchised schemes have failed due to a lack of expertise and capital required,” he said. “Before becoming a licensee or franchisee I urge brokers to check out the financial backgrounds of the companies prior to getting involved.”
He added: “Brokers would be foolish joining an organisation which doesn’t have at least two years’ track record and a concept which already works. It’s laughable the extent to which some firms feel they can build a network or franchise with a few thousand pounds in the bank – they must presumably think that there are a lot of gullible brokers out there, prepared to join them fingers crossed.”
