CCR Magazine

Subscribe Here
You are here  :Home arrow News arrow Eight out of 10 DAs opting to provide second-charge advice
Contact Us Newsletter Signup RSS Feeds

Latest News Headlines

Headlines

 
Commercial Credit News

Headlines

 
Eight out of 10 DAs opting to provide second-charge advice PDF Print E-mail
Thursday, 24 March 2016
Initial research from specialist finance broker, The Loans Engine, has today (24th March 2016) revealed that eight out of 10 directly authorised (DA) advisers are opting to provide advice on second-charge products themselves. 

In the first week of the newly-introduced Mortgage Credit Directive (MCD) rules, which brought second-charge mortgages under FCA regulation, The Loans Engine has collated information from the enquiries it has received from DA firms and advisers.

It has revealed that eight out of 10 are opting to provide the advice themselves, retaining their ‘independent’ status, and opting to use The Loans Engine to package the deal for the recommended lender.

The Loans Engine believes the popularity of the ‘package-only’ model being utilised by a large number of DA firms may surprise much of the master broker market, who may well have been prepared for more advisers to introduce and refer clients rather than provide the advice themselves.

Ryan McGrath, Chief Executive of The Loans Engine, said: “Our initial research will undoubtedly surprise many within the second-charge master broker community who would have anticipated many more DA firms and advisers opting to introduce their clients on, rather than issue the advice and recommendation. We have always felt that in the DA space there would be many more firms who would feel uncomfortable referring their client on and would instead opt to deliver the advice, whilst utilising a master broker like ourselves who are able to deliver in terms of packaging the case. We have certainly found this option proving incredibly popular and our decision to gear up our resources in the ‘package-only’ space has proved prescient because of this.

“The lure of maintaining ‘independence’ appears to have proved incredibly strong, as has being able to deliver a whole of market offering, and DA firms are clearly not going to give up on this lightly. We suspect that because of this, DAs – who after all will be able to work with whomever they wish unlike most network AR firms – are actively looking to use master brokers who have the necessary resource, experience and skill-set to be able to offer a quality packaging service. It is of course very early days under the new regime but we would certainly urge those DA firms who want a package-only service to contact us in order to see how we can best support the option they have chosen.”
 

 Forums International Ltd

Forums International Ltd

 Attendance at your first meeting is free of charge, and please quote reference 'CCR2016' to receive the special 10% discount off of your first annual subscription.

Find out more here.

latest issue

CCR Cover

The latest edition of CCR Magazine, the leading editorial publication in the UK credit industry, is out.

Read the latest issue online

CSA

subscriptions

CCR is the premier magazine for consumer and credit professionals. It provides an independent voice to the industry, breaking major news stories and running in-depth features.

As a magazine, it works with and campaigns on behalf of the credit industry to promote its importance as a centre of potential profit and business development to the wider business world.

Subscribe to CCR Magazine

CCR World Magazine


 

Providing information and analysis for thousands of senior credit professionals worldwide, every quarter.

Find out more

GTS Media Ltd
81 Cambridge Road
Southend-on-Sea
Essex
SS1 1EP

Registered in England No: 05483197