Clever Lending urges DAs to decide second charge route

The introduction of MCD has meant that two main options are available for loan introducers with some still looking at their business models to decide which will be best for them in the longer term.

The first is to remain independent and offer the client loan advice from the whole of market, then pass the case to the master broker to package and deal with the lender direct.

The other option is for advisers to refer the client on to the master broker at a much earlier stage to source the most appropriate loan and take on underwriting and full packaging.

Many firms are still deciding whether they want to retain full ‘independence’, and if they are resourced to do so as second charge levels increase.

Clever Lending says the danger of procrastinating or deciding not to offer advice on second charges is that firms run the risk of losing the client altogether and the client then seeking advice from another adviser.

Sonny Gosai, sales and operational manager at Clever Lending, commented:

“Now that MCD is here there are still a few issues for introducer firms to decide on and they need to be considered carefully. The route to second charge advice needs to be looked at by each firm individually so it’s matched in with their skill sets and business plan as enquiries increase.

“With Clever Lending geared to work under the new regulation with advisers choosing either route, we welcome discussions to see how we can best help their second charge clients now and in the future.”