It will offer brokers and financial advisors a more ethical approach to buying secured loans for their clients.
Source Software is the company behind the Source™, a free user-friendly software package that enables brokers and advisors to find, compare and sell a range of insurances. Its lending division has been providing a mortgage intermediary service to brokers since 2000, and has now launched its secured lending service, offering products from 10 lenders.
Source intends to be the ‘white knight’ of the lending industry. Unlike most high street lenders, its PPI will be offered as a service rather than a high-profit-generating scheme.
It will operate a ‘fair and transparent process’, making sure that brokers understand what their clients’ PPI will and won’t cover, and allowing customers to accept or reject the PPI as part of their loan. Borrowers won’t pay interest on their PPI because the Source PPI will be a monthly premium policy, rather than a single premium bundled into the loan.
Steve Evans, director of lending for Source Software, said: “We know that many financial advisors don’t want to touch secured loans. They’re not really sure what their customers are getting for their money, and they don’t want them to be misinformed or ripped-off. It’s easier for them to advise customers to re-mortgage, but that’s not always the best option, for the broker or their customer. We want to give secured lending a clean sweep, so brokers can add loans to their service with confidence.”
Source will also give brokers more control over their clients’ affairs: they can choose to oversee the loan process from start to finish, or handover the process to Source. Either way they will receive regular e-mailed status reports and soon, online case tracking. They can also choose whether to sell PPI themselves or leave it to Source.
