L&G launches second charge proposition

L&G launches second charge proposition

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, 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.

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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.

Jeremy Duncombe, director at the Legal & General Mortgage Club, said in the post Mortgage Credit Directive environment, it is important to provide members with a wider choice of products, including second charges.

He said: “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.”

Alan Cleary, managing director at Precise Mortgages, said second charge lending is a growing market with opportunities for mortgage intermediaries.

Mr Cleary said: “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.”

Yesterday (9 May), Complete FS introduced a new master broker fee structure for those embracing second charge lending, made up of a flat application fee of £199 along with the lender’s valuation fee and disbursements.