Second Charge Club will allow brokers to access those lenders offering a direct facility, but with the free help and support of second charge underwriters, sourcing tools and soft credit searches.
Steve Walker, managing director, confirmed that the club is considering five lenders in the launch phase, with some ready to accept enquiries and others very close to a live date.
He said that brokers should earn the same commission they would get by going via another club or direct to the lender.
Walker added:
“The biggest challenge for brokers new to the sector will be in choosing the most suitable lender at the outset. Current mortgage sourcing systems only give approximations. The underwriting isn’t detailed enough and once a credit score is carried out different plans will appear and could mean the chosen lender is no longer the most suitable. This results in brokers applying to multiple lenders to get the best illustration from each lender. Ultimately none of them may accept the case.
“Our team of loan experts, who deal with the lenders everyday, supported by specialist sourcing systems and integrated soft credit searches, can get a broker on the right track in a matter of minutes. It’s a totally free service so brokers thinking of dealing direct with second charge lenders would be missing a massive benefit if they didn’t take advantage of it.
"In addition we can give them access to the whole second charge market and they can choose a competitive packaging or referral option if a direct lender isn’t available.”
