Loan Source allows brokers to compare loan options to offer the cheapest solution to clients. Borrowers can see the cost benefits of either a remortgage or taking out a secured loan option while leaving the existing mortgage in place.
Brokers sourcing bridging finance will be able to see the true cost of the bridging loan once fees and charges have been factored in.
The software will be able to produce a European Standardised Information Sheet (ESIS), a Key Facts Illustration with additional information to comply with the Mortgage Credit Directive as well as Consumer Credit Act (CCA) documents for second charges.
Managing director of Twenty7Tec James Tucker said many software providers in the industry had said it was not possible to create a sourcing system which integrated second charge and bridging loans.
“We’ve proved it can be done,” said Tucker. “We’ve worked with the industry to produce this system ahead of the arrival of the Mortgage Credit Directive so brokers can compliantly look at all the loan options available to a borrower, as dictated by the directive.”
Brightstar and Complete FS piloted the sourcing system ahead of this week’s launch.
Rob Jupp, CEO of Brightstar, played a key role in the development of the sourcing system.
He said brokers advising on secured loans and bridging finance needed to embrace technology if they wanted to protect themselves from future mis-selling scandals.
“The specialist lending sector is not treating customers fairly,” he said. “Without technology to support us we are not able to source the correct product and record a decent audit trail to prove that the lender and product chosen are in the client’s best interests.”
Jupp said some in the bridging community had said they didn’t need a sourcing system but he added that when loans were compared the difference between rates and fees was ‘astronomical’.
“We need to take the emotion out of the process and provide clear options for the client. You have to use technology in this industry or risk becoming obsolete,” said Jupp.
There are currently 99 lenders listed on the Loan Source. Brokers who want to use the system can contact Twenty 7 direct for a free trial.
