Promise sees 40% rise in conversion rates post-MCD

Managing Director Steve Walker said that the results should offer further encouragement to mortgage brokers looking to sell seconds.

He said that many in the industry were initially concerned about the impact MCD would have on business levels, expecting a more detailed sales process with intensive fact finds to reduce conversions, as potential borrowers would be less engaged.

Steve continued: "Added to that we expected more cases to fail due to new affordability models and some loans being deemed unsuitable, many of which might have gone ahead in a pre MCD non advised arena.  

“However, our figures show that these factors have been more than offset by a marked increase in the percentage of customers returning application forms and progressing to completion.

“It’s clear a more robust sales process ensures a better understanding and engagement between the adviser and borrower. The advice provided is suitable and well explained and therefore there is less chance of the borrower changing his or her mind further down the line.

“What these figures suggest is essentially MCD has had the desired effect. Customers are receiving better outcomes and are happier as a result and brokers should take confidence from this. Now is the perfect time to get involved with second charges. Rates are at record lows, fees are falling and customers are actively seeking the flexible solutions second charge lending offers.”