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Hi Martin
Your maths work, it makes sense to me, and we are in the target band of turnover for your brokers.
A couple of observations:
Payment
Since the Network Data fiasco we have generally avoided mortgage clubs who receive the fees then pay on. A direct to broker proc fee payment would be the way to go.
Range of services
You need to include a life panel to make things comprehensive
Eliminating frustration
One thing that does bug us is new Lenders distributing only through the likes of Sesame and Intrinsic, ignoring DA's. Having the buying power to attract new lenders would be key.
Fees
I don't see the fee quoted in your article as being enough to run the operation in the best way.
If this new Club was big enough to have a voice with the Lender's, Insurers, and the Regulator, it would do a better job for the broker than many of the incumbents.
We know of some Mortgage Club's offering a refund of half their margin to Brokers. You should better that, still gaining enough revenue to create a fully rounded service.
Thresholds
Consider limiting membership to firms generating sufficient revenue, as the revenue is key to the buying power. The more revenue the broker generates, the more adept they are likely to me, the more they can contribute to the whole.
You are better having 500 brokers generating £20B than 1000 generating £30B
