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Second charge firm Y3S offers PI cover for ARs

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  • 18/11/2015
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Second charge firm Y3S offers PI cover for ARs
Y3S, the secured loan packager, has created a Professional Indemnity (PI) policy which will protect Appointed Representatives (AR) of mortgage networks placing second charge business with the firm against future client claims.

The secured loan firm said many mortgage networks had not entered into any partnership agreements with specialist loan intermediaries, leaving ARs concerned about safely referring clients for second charge mortgages, fearing poor advice may come back to haunt them.

Matt Cottle, joint CEO of Y3S, said: “We’ve brokered thousands of secured loans for the clients of ARs and we speak to hundreds of these guys every month, so we get a very real and rounded view of what’s going on. With the advent of MCD [Mortgage Credit Directive] almost upon us, ARs are confused about what’s wrong and what’s right. Many believe that they must use their network or nobody at all, but in fact the reality is quite different; most mortgage networks are stacked with other priorities and happy for their ARs to find their own solution.”

Joint CEO Barney Drake said some mortgage networks specify that ARs must use a named packager in order to receive their kickbacks, but they speak to ARs every day who are unwilling to change long-standing relationships with loan packagers, irrespective of the wishes of their network.

“Those ARs that speak out are being given the green light by their network to go their own way despite the contractual obligations imposed upon them,” said Drake. “Our PI cover provides a safe haven to every AR in the UK. They don’t need the extra hassle of wondering if they are doing the right thing by their client, we’ve taken care of it for them.”

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