Legal & General Mortgage Club has launched a direct-to-lender proposition for second charge loans.
Leading up to the implementation of the Mortgage Credit Directive (MCD), the mortgage club launched a master broker referral panel to support intermediaries who wanted to discuss second charges with customers.
This service is now being expanded, meaning brokers who wish to directly advise can go straight to certain lenders.
The initial panel of lenders includes Precise Mortgages, Prestige Finance, Paragon Bank and United Trust Bank, with further lenders expected to be added over the next couple of months.
A statement from Legal & General explained the new proposition will help brokers provide a differentiated service through technology, holistic advice and future proofing.
Back in August, the club launched an MCD guide and matrix to give brokers an overview of what the regulations – which came into force this March – mean for them.
Jeremy Duncombe, director at the Legal & General Mortgage Club, said that in this post MCD environment, it is important to provide members with a wider choice of products, including second charges.
“Our proposition will now enable us to work with lenders and master brokers to develop new products and criteria for this market, increasing awareness of the opportunities, and providing a better outcome for customers.”
IFA verdict
Alan Cleary, managing director at Precise Mortgages, commented that second charge lending is a growing market with opportunities for mortgage intermediaries.
“The FCA states that they expect the vast majority of second charge sales to be on an advised basis – this is undoubtedly an area where intermediaries excel.”
peter.walker@ft.com
