We’re now just weeks away from the implementation of the Mortgage Credit Directive (MCD) but are you ready for it? While lenders, trade bodies and, of course, the regulator have spoken extensively over the last year or so on the impact MCD will have on the industry, there are a number of brokers who have yet to really consider how the new regulation will affect them.
While there may be an element of apathy within some parts of the intermediary sector I believe the main reason a number of firms are ill prepared for the new rules is they don’t quite know how to get ready for it. They’re not sure what, practically, they can do to take the first steps so as a result they don’t do anything.
But time is running out. Brokers must take action now before it is too late. If a broker values his independent status and wants to keep it, he needs to incorporate secured loans into his sales process now. The regulator has made it clear that those who don’t offer second charges will not be able to market themselves as independent.
And, status aside, it’s vital for your future business success that you embrace the second charge industry. With secured loans set to be fully regulated by the FCA under the MCD, those brokers that engage with them will be able to offer their clients a holistic service, with a variety of solutions to meet their needs.
By not offering this type of comprehensive service to your clients you risk losing them to a competitor who does. Consumers want efficient solutions, not disjointed sales processes.
Of course, the broker does not have to process the secured loan himself but he has to at least present a second charge as an option. By not doing so they leave themselves – and their businesses – vulnerable.
There is plenty of help and support on offer from mortgage clubs and secured loan providers, so now is the time to utilise it.
Find a second charge provider you trust to partner up with. Not only will they be able to offer you expert advice and assistance, if you don’t want to sell seconds yourself, you’ll be able to refer your clients to your partner firm.
Do your due diligence to ensure you find a firm which is most suited to your company, with a similar ethos.
Make use of your mortgage club or network. They will be able to help you with compliance issues and provide guidance on what the regulator will expect come 21 March.
Time is running out and doing nothing because you aren’t sure what steps to take could cost you dearly. Take the first step today.
