Having read this excellent blog from my contemporary; Bradley Moore at Brightstar: http://www.bestadvice.co.uk/much-evidence-ignore/ I came away with a sense of frustration, which has subsequently developed into a need to evangelise. My frustration came from this phrase:
“Only last week, I was talking to a very respected industry figure with responsibility for his firm’s stance of all things lending related. When the subject of second charge lending came up, he told me that their brokers were told not to engage”
There is certainly a schism within the mortgage broking field, a distinct step between those who embrace second charge secured loans as a viable tool to assist their clients in the short to medium term, and those who think that secured loans are a product akin to introducing Sauron to Middle Earth, wreaking financial ruin upon a previously happy client.
In fairness as a secured loan packager it can sometimes feel that we are like a giant burning eye looking out from the darkness toward the light, but you know what, most of us don’t want to take over the world, most of us don’t want to pressure and bully and impose our business upon those who don’t see the benefits…most of us, just want to be loved.
The scrupulous among us see ourselves as partners to the mortgage brokers and IFAs, genuinely interested in helping develop your business by offering products that really are best option for your clients, rather than rail-roading your customers to oblivion and watching as you handle the fallout!
Last week I met with an introducer in Cardiff who with no sense of any ulterior motive than glibly relaying his working practice stated “secured loans, nah, I advise them not to raise money until they are out of their fixed deal”...he no doubt had his customer’s interests at heart, but wouldn’t anyone agree that his naivety lies in that the customer will doubtlessly go elsewhere to get a secured loan?
Sure he does the remortgage at the end of the fixed period, but it’s a higher remortgage on account of clearing a secured loan the client has taken through another source. In other words, he has passed up an earning opportunity because when Mrs Brown wants a conservatory, she will not wait 2 years for her mortgage to move to an SVR!
The day when we are seen as equals is anon, the adoption of the secured loan market by the FCA comes at a time of change within the mortgage market. From April, advisers involved in mortgages will need to check the secured loan option as a part of their client advice process, all the while lenders are now taking ownership of affordability proof, we are already seeing an influx of deals where the likes of Santander are kicking out re-mortgages because of commission elements within gross pay.
Each day, the light draws nearer, the question is; right now, who is working in the dark?