PTFS to open door for ARs to go direct to second charge lenders

by: Carmen Reichman
  • 16/03/2017
  • 0
PTFS to open door for ARs to go direct to second charge lenders
Mortgage broker network Personal Touch Financial Services (PTFS) is to launch a direct-to-lender panel for second charge business.

The network plans to launch the panel of about three to four lenders in the coming month and is currently in the process of finalising the terms of business.

The additional panel, which will run alongside the firm’s master broker panel, will allow brokers to deal with lenders directly, in the same way they are currently able to in first charge market.

Head of propositions Vikki Jefferies said: “We want to continue to work with master brokers because they are still valuable for our members. But this is about giving our appointed representatives additional options to go directly to a lender.”

PTFS brokers are currently mandated to do all second charge business via a panel of two master brokers: Promise Solutions and Gateway.

This is common practice among networks, which, following the implementation of the Mortgage Credit Directive, decided not to allow their intermediaries to advise on ‘seconds’ for fear of a regulatory breach by dabbling in a corner of the market they did not fully understand.

Instead they entered commercial agreements with certain packagers, creating possible consumer detriment as a result. Analysis from Mortgage Solutions last year revealed a borrower could pay between £2,250 and £5,825 for the same loan, depending on the brokers’ network membership.

PTFS’ charges were mid-field at the time and have been dropped since, Jefferies said: “The fees vary, but our average fee is around 7% and never more than 10%.”

Growth has not happened

However, for Jefferies the real issue with seconds was the fact brokers were not particularly interested in the products themselves.

“The real question on seconds is what ability there is to grow, the anticipated growth in this sector hasn’t happened. As an industry we are still missing adviser buy in, and while they are still really busy with mainstream first charge business, second charge just isn’t a consideration,” she said.

“With new mainstream lenders’ propensity to take on more non-standard risks a full re-mortgage with additional borrowing is normally the best solution for the customer, rather than adding a second to the first charge,” she added.

There are 0 Comment(s)

You may also be interested in


Keep up-to-date with all the breaking bridging and short-term lending news and analysis, from regulatory changes to product innovation and inside market knowledge. Take a look at our broker and lender case studies showing short-term finance in practice.


Find all the news, opinion and analysis for property finance brokers specialising in commercial and semi-commercial mortgages, alternative and development finance for commercial investments in residential projects.

Second charge

Stay up-to-date with the latest news, analysis and opinion on the secured loan market as it evolves into a mainstream finance option following European regulation on 21 March 2016.

Complex buy-to-let

Whether it’s a complicated asset or a complex customer, you’ll find out all the breaking buy-to-let news in this section. From limited companies to portfolio landlords, student lets to a House in Multiple Occupation, we’ve got all bases covered with our up-to-the-minute news, analysis and opinion.

Mortgage Solutions

Find all the breaking news, analysis and industry comment on Specialist Lending Solutions' sister site, Mortgage Solutions

Read previous post:
Nominate the industry’s best for the British Specialist Lending Awards 2017

You or your colleagues could be claiming one of the titles at the very first British Specialist Lending Awards.