Promise Solutions launches second charge club
Promise Solutions has launched a club proposition for mortgage brokers looking to maintain their independent status or reduce client costs by arranging second charge loans direct with the lender, without the need for additional packager or master broker fees.
The club allows brokers to access those lenders offering a direct facility but with the free help and support of experienced second charge underwriters, sourcing tools and soft credit searches to help brokers place their cases with the best lender.
Steve Walker, managing director, Promise Solutions and Second Charge Club, said: “This proposition means brokers who are not used to the sector can benefit from our experience and systems and it won’t cost them a penny. In fact it will save them considerable time and numerous headaches.
“The biggest challenge for brokers new to the sector will be in choosing the most suitable lender at the outset. Current mortgage sourcing systems only give approximations. The underwriting isn’t detailed enough and once a credit score is carried out different plans will appear and could mean the chosen lender is no longer the most suitable. This results in brokers applying to multiple lenders to get the best illustration from each lender. Ultimately none of them may accept the case”
Walker added: “Our team of loan experts, who deal with the lenders every day, supported by specialist sourcing systems and integrated soft credit search’s, can get a broker on the right track in a matter of minutes .
“It’s a totally free service so brokers thinking of dealing direct with second charge lenders would be missing a massive benefit if they didn’t take advantage of it.
“We are keen to work with mortgage brokers who want to break into second charge loans. We will help them get it right, save them time and save money and it shouldn’t cost them a penny. We can give them access to the whole second charge market and they can choose a competitive packaging or referral option if a direct lender isn’t available.”
Key features of the club include a single data entry system with interactive sourcing and filtering for all second charge lenders which allows underwriters and brokers to simultaneously view and discuss the same enquiry. The system also applies the underwriting rules to a soft credit search which can be carried out behind the scenes and doesn’t harm the borrower’s credit file.
This is followed by manual underwriting where required which will give brokers the strongest guide to which lenders offer the best deal and are likely to accept the case.
The broker will get a copy of the research completed which includes a summary illustration of the preferred product plus as a guide to the next steps to take.
Walker said: “Of the five lenders we are considering in the launch phase, some are ready to accept enquiries and others are very close to a live date. Brokers should earn the same commission they would get by going via another club or direct to the lender whilst getting the unrivalled expertise and assistance of seasoned loan packagers.”