Let ARs go off panel for second charge lending – Cardiff Money

  • 07/12/2017
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Let ARs go off panel for second charge lending – Cardiff Money
Appointed Representatives (AR) should have the freedom to go off panel for second charge enquiries, according to broker Cardiff Money.

Second charge packagers are being blocked by ARs if they are not on the networks’ panel, which could have a detrimental effect on clients, according to Daniel Yeo director of the regional broker firm.

The restriction stemmed from the Mortgage Credit Directive (MCD) – but Yeo suggests the regulator’s core principle to Treat Customers Fairly is being compromised, as a result.

Clients could be worse off after being tied to a limited choice of packager, according to the Wales-based broker.

And consumer’s understanding of restricted panels may also be limited, he warned.


Whole-of-market benefits

Yeo told Mortgage Solutions: “We are vocal and passionate about second charge mortgages.

“We believe ARs should be able to submit an off-panel request to their network for second charge enquiries if they don’t want to be told who to use.”

Yeo predicts next year the sector will undergo some big changes.

He said: “We will have bedded in MCD and the regulator may well think that now is a good time to pop back to see how we are getting on – and they might not like what they see.

“It is important for the industry to work together and tidy up things like allowing ARs to move off panel where appropriate.

“We can improve the industry ourselves, or, we can wait for the regulator to intervene and do it for us.

“I suspect if we wait for the latter the results may not be so pretty.”

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