Ever since the regulator made it clear that brokers who choose not to embrace second charges would lose their independent status, brokers have had to carefully consider how they are going to approach secured lending in the new regulatory environment.
It’s understandable that this is causing some concern among the broker community. Those that had planned to offer secured loans simply on a referral basis (i.e. passing the case to a loan broker) may now be rethinking their choice in order to maintain their whole of market title.
With just three months to go until the new regulation kicks in it’s important to know where you can turn for advice, especially as the loan industry is likely to adopt the new rules around the end of January.
Appointed representatives should be getting the support they need from their networks. The networks I have been speaking to have been proactive in advising and supporting their brokers when it comes to second charges. If you have questions or concerns contact yours and see what help it can offer you.
Directly authorised brokers may have to look a little further for support. Speaking to loan brokers can help. If you have a firm you were intending to partner with on a referral basis, see if they offer a whole of market packaging facility but make sure it is robust enough to protect you should you choose to give the advice. By using the right packager you’re able to get the support you need to advise on seconds while still keeping your whole of market title.
Use the press. Commentators like myself are regularly offering our advice and insight in the trade press. Use this information to your advantage.
If you are tied to a club, see what help it can offer you, particularly from a compliance point of view. Mortgage brokers have far less to worry about than second charge brokers. They already give advice and have the process nailed down. Access to packaging expertise, research, whole of market loans and an acceptance of now dealing with second charges are all relatively easy nuts to crack.