Does being a whole of market adviser in the sphere of lending give you a marked advantage over someone who only offers restricted advice? Why would any client opt for advice where there is a restriction on the service being provided? No one in their right mind is going to accept a half service if they know that they could receive a more complete version down the road.
The scope of service offered by every broker will have to be particularly clear after the full implementation of the MCD in April 2016. Opting in or out of providing advice on second charge loans in their scope of service will be the big decision of the year for many firms.
Some brokers, for whatever reason, may have already decided that second charges are not what they want to do, but many will be trying to weigh up the pros and cons and I think that for those who are not sure, I would urge them to look at what they and their clients might be missing.
Even the regulator is insisting that clients are made aware of the second charge loan as an option and there are numerous reasons why in many circumstances a remortgage is not the right advice, but a secured loan most definitely is.
To save everyone a lot of soul searching, I offer up the following solution: For those who do not want to have anything to do with second charges, they can still, if they have kept an open mind, refer their client over to a specialist provider (like us), who will become responsible for the advice given. Alternatively, firms can add second charge advice to their scope of service and still make use of the service provided by a specialist. In that way, you can have the best of both worlds – full control and let someone else do the heavy lifting!
