I read a quote recently from Czech historian Konstantin Josef Jirecek that seemed to rather neatly sum up what many of us feel about the forthcoming implementation of the Mortgage Credit Directive (MCD): “We, the unwilling, led by the unknowing, are doing the impossible for the ungrateful”.
I would imagine that for many lenders in particular, this quote rings true as they think about MCD. Indeed, even the intermediary market remains polarised by different approaches to the new regulation. But does it have to be this way?
As is often the case, technology can play a significant role in helping intermediaries operate successfully and compliantly in the post-MCD world.
Simply put, if you’re an intermediary who wants to advise on second charge or bridging loans, then you need the technology or process in place to show that you have evidenced why that product is more appropriate for your client than a remortgage. In fact, even if you want to hand off the responsbility for that advice entirely, you will still want to be able to identify when to hand off, and when actually, a remortgage is absolutely the right choice.
Many specialist distributors have introduced sourcing systems that help you to identify when a second charge could be the right option – if so, then the system can let you seamlessly transfer that client’s data to your preferred distributor to take full responsibility for the advice.
We’re also seeing networks and directly authorised firms looking to use independent third party secured loan sourcing systems to enable their advisers to source and compare second charges.
It may be a brave new world that we’re entering after the 21 March, but if you choose the right partners to support you, it doesn’t have to be as scary as it may seem right now.
