JLM backs transparent master broker fees

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  • 15/02/2018
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JLM backs transparent master broker fees
Broker network JLM has given its backing to calls for greater transparency in second charge master broker fees.

The network told Specialist Lending Solutions that it felt too often fees were not clear enough and this could result in customer detriment.

JLM said one of the keys was for lenders to offer wider access to brokers, and for brokers to get more involved in the sector themselves.

The issue of master broker fees has become a significant point again, particularly as the Financial Conduct Authority (FCA) is understood to be taking a keen interest in the second charge sector.

Earlier this week former FCA mortgage manager Lynda Blackwell said the second charge market was “letting the side down” and needed a “massive cultural shift” – with some master brokers needing to look at their consciences.

Last week Sesame and PMS managing director Mark Graves raised some concern about the level of fees still being charged and noted that the sector needed to be better at self-policing these issues.

 

Brokers get involved

Sebastian Murphy, head of mortgage finance at JLM Mortgage Services (pictured left) said: “The second charge market needs more brokers to get involved.

“There is a lack of transparency in the fees second charge master brokers are charging – they need to be itemised to be clear what customers are paying for.

“Bridging has largely achieved this transparency,” he added.

Rory Joseph, director of JLM Mortgage Services (pictured right) continued: “Part of the reason they are able to charge such large fees is because unsecured loans are not available over longer periods, otherwise these would be cheaper.

“It’s good that sourcing systems are now covering the second charge market, but they are not doing it well and that needs to improve. We can do some simple things to improve the industry,” he concluded.

 

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