Intermediaries looking to deal with second charge loans after 21 March have three options, writes Nicola Mooney, head of secured, intermediary and business finance at Freedom Finance.
Intermediaries looking to deal with second charge loans after 21 March have three options, writes Nicola Mooney, head of secured, intermediary and business finance at Freedom Finance.
The three options are:
• Going solo
The master broker acts as a pre-packager and does not have any direct contact with the intermediaries client. Using the sourcing portal, intermediaries are able to see accurate options and quotes on offer for their client, based on their credit profile and history.
Who should consider this option?
Intermediaries wishing to advise their customers themselves throughout the process and feel comfortable with compliance and responsibility of each sale. Should an alternative offer be needed, Freedom Finance will provide a full summary of why the sale could not be processed and offer alternative options for the intermediary to discuss with the customer.
• Introduction only
Intermediaries can either pick up the phone or send an email to the dedicated intermediary broker support team and simply pass their customers’ contact details onto Freedom Finance who will then take care of every step of the process from sourcing, packaging, processing and finally completion.
Who should consider this option?
Intermediaries who wish to allow Freedom Finance’s committed customer service team to deal with the client throughout the process via a fully compliant and regulated service.
• Best of both
Intermediaries can use the sourcing portal and go through a non-advised route. This allows intermediaries to gather accurate quotes for client loans, based on their individual circumstances, without risking damage to their credit score and while still retaining control of the entire end-to-end process. The intermediary is provided with a comparison and will be able to advise their client of all the options on offer before passing them over to their recommended master broker who will be able to complete the sale.
Who should consider this option?
Intermediaries who want access to all the options available to their customer but might not want to hold the compliance and give the full advice. The sophistication of the portal ensures intermediaries get accurate quotes and not indicative ones. This puts the intermediary in a strong position as the offer is real and available and this can often help in securing a sale.
With the long awaited MCD now firmly on the horizon, Freedom Finance has been able to offer options to advisors that will help them adapt easily to the changes. Over the last year we have been training our team, recruiting the right talent and updating our processes to ensure we and all the intermediaries we work with are fully equipped.
As the MCD steadily becomes implemented, the second-charge market will continue to develop and blend even further into the mainstream mortgage market. Many intermediaries will have different needs when it comes to incorporating seconds within their sales process so it is vital we offer the best options and steps to ensure they are truly familiar with all the options available. We believe in being adaptable and flexible to market requirements and we aim to ensure the needs of intermediaries are met with a personal and dedicated service that holds the customer at the heart of all our decisions.
