Fluent Money, the UK’s largest second charge broker, gained its full authorisation from the FCA in June and is now looking to develop its intermediary business through educating advisers and building greater rapport based on sound and accurate information on the implications of the new regulatory rules.
According to Tim Wheeldon, there is evidence that some advice being given to mortgage brokers has been wrong or exaggerated.
Tim Wheeldon said, “One of the exaggerations that has been doing the rounds is that a mortgage broker quoting for a remortgage must also provide a quote for a second charge option. Under the new regime, a mortgage broker does not have to provide a second charge quote; all he or she is expected to do is to make the client aware that there are alternative sources of funding, one of which is secured loans.”
He added, “I would love to be able to say it was true that brokers MUST provide a second charge quote, but it is wrong to make claims like that when the reality is so different. If we really want mortgage brokers to see second charge lending as a real alternative, then we need to be fully conversant with the rules, rather than playing on brokers’ understandable uncertainty over doing the right thing by their clients. If we want to convert more mortgage brokers to the second charge option, then let’s win them over with facts, not by frightening them into action which will be resented in the long run.”