London Money harnesses MCD ‘opportunity’ to launch second charge brand

  • 20/04/2016
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London Money harnesses MCD ‘opportunity’ to launch second charge brand
London Money Group are launching into the second charge mortgage market, capitalising on an ‘opportunity’ presented in the Mortgage Credit Directive, which ruled that brokers must consider this type of lending for their clients.

London Money Loans will operate as an appointed representative (AR) under the London Money Group and will be based in Victoria in London.

Founders Martin Stewart (pictured), Scott Thorpe and Dan Barker believe the new brand will allow, mostly London-based brokers, to access what it sees as an under-utilised product.

“I have spent a lot of time in the past six months canvassing brokers and many of them were confused by this specialist market”, said Stewart.

“We now want to help change this and so, with continued support and training for all introducers, we hope to educate brokers and encourage them to embrace change. I firmly believe that where there is regulation there is also opportunity.”

The new brand will use its existing panel of lenders while also looking to expand its reach with new second charge lenders.

Thorpe said: “We believe the market is set for rapid growth in the years ahead, particularly in London and the South East where clients tend to come with more complicated back stories.

“We understand that trying to enter this market requires a different approach and leveraging an existing London- centric brand like London Money made logical sense. Furthermore, this is a broker driven proposition with like-minded people helping and encouraging those that may be a little lost with all the recent changes.”

Stewart said the key is to educate brokers to help them understand that second charge products are a viable option.

“I believe more mortgage prisoners have been created from MMR and MCD than from the credit crunch itself and second charges have gone some way to addressing that issue for our clients”, he said.

Although the main office will be based in Victoria the packaging will be done in South Yorkshire, headed up by Thorpe who also owns Access 4 Finance. He said that having two offices will allow the group to have the best of both worlds – the ability to meet clients in London and the advantage of low overheads outside the capital

“This will then enable us to pass these savings onto our introducing brokers,” said Thorpe.

London Money Loans has announced a series of key dates to help introducers spot opportunities.

The first master class will be the 4 May in the Victoria office and the first guest speaker will be Maeve Ward, sales director at Shawbrook Bank, who said: “We were delighted to announce this key partnership with London Money Loans, we have known the individuals for many years and look forward to helping and supporting this new proposition. “

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