Member Article

Clever Lending – DAs to decide on route

Clever Lending, the master broker, is still seeing a number of Directly Authorised (DA) adviser firms unsure as to which route they go down for dealing with increasing second charge mortgage enquiries.

The recent introduction of the Mortgage Credit Directive (MCD) has meant several options are available for loan introducers with some still looking at their business models to decide which will be best for them in the longer term. With the growing awareness of second charge mortgages, their popularity and business levels are set to increase post-MCD, so DAs now need to look closely at which route to take.

In essence, there are two options. To remain independent and offer the client loan advice from the whole of market. Then pass the case to the master broker to package and deal with the lender direct.

The other option is for advisers to refer the client on to the master broker at a much earlier stage to source the most appropriate loan and take on underwriting and full packaging.

Both routes have their advantages and it probably comes down to a desire from the adviser firm to decide whether they want to retain full ‘independence’, and if they are resourced to do so as second charge levels increase.

The danger of procrastinating or deciding not to offer advice on second charges is that firms run the risk of losing the client altogether and the client then seeking advice from another adviser. This could lose the firm business, and customers.

Clever Lending are set up to deal with brokers and advisers for both the advised and packaged routes. Being fully FCA compliant for consumer credit transactions, their systems and company structure mean they can offer a range of options for introducers, whichever route they take.

Sonny Gosai, sales and operational manager at Clever Lending, commented: “Now that MCD is here there are still a few issues for introducer firms to decide on and they need to be considered carefully. The route to second charge advice needs to be looked at by each firm individually so it’s matched in with their skill sets and business plan as enquiries increase.

“With Clever Lending geared to work under the new regulation with advisers choosing either route, we welcome discussions to see how we can best help their second charge clients now and in the future.”

This was posted in Bdaily's Members' News section by Ron Bell .