SimplyBiz expands direct seconds panel with Prestige Finance

The move will allow SimplyBiz members to submit directly to Prestige rather than through its master brokers.

Prestige, which is part of One Savings Bank, offers a range of products including prime, large loans, buy-to-let professional and standard.

SimplyBiz launched its direct secured loans panel with sole member Precise Mortgages in May.

The group has plans to include further direct lenders in the coming months but said it wants to expand “one firm at a time” to ensure lenders are in an “appropriate position” to deal with demand from its members. It will also continue to work with master brokers.

Second charge lending used to be the preserve of master brokers but the Mortgage Credit Directive (MCD), implemented on 21 March, opened the market up more widely, effectively allowing for the products to be treated like mortgages.

Following the MCD, second charges were no longer governed by the rules of the Consumer Credit Act 1974, which had prohibited brokers and lenders from charging fees upfront before the loans completed.

Lenders have already jumped at the opportunity of selling the products directly, with both Legal and General Mortgage Club and Sesame launching specialist lending panels.

SimplyBiz Mortgages CEO Martin Reynolds (pictured) said: “The feedback we have received from members is that they like the choice of submitting direct to lenders, as they do with traditional residential lenders.

“We will continue to work with lenders who wish to offer secured loans direct and will enhance our panel in a controlled manner during the summer.”

One Savings Bank sales director Adrian Maloney added: “The second charge market is evolving and providing brokers with more choice and control via a direct submission route will complement our existing distribution channel”.