FR: How do you see regulatory changes affecting the market in the near future?
The impact of FCA regulation so far has been somewhat muted. Many firms are still taking a somewhat casual approach to second charge lending, although in some ways this was to be expected. As March 2016 approaches we are likely to see networks and advisers taking a more active approach to secure loans and scrutinising the way they process them.
I think we will see the relationship between advisers and master brokers change. Advisers must be careful not to leave themselves open to complaint when selling secured loans and master brokers should do more to help mortgage broker prove they have done the job properly, even in the case of a referral. To many loan brokers are currently having little regard for the compliance needs of introducer
FR: What steps can be taken to further inform and educate brokers about the benefits of secured loans and the wide range of scenarios they can be used in?
We need to have a more collective approach. I have been trying to educate and inform brokers for seven years but one voice is not enough. Recently others are joining in such as the recent viral campaign launched by Simon Carr at Precise Mortgagesin which Carr calls upon everyone involved in the second charge sector from master brokers and mortgage networks to surveyors and even other lenders to spread the word about the benefits of secured loans to the mortgage intermediary industry. As someone who has ploughed away at doing just that for so long I wholeheartedly agree that we need more voices in order to get heard. We won’t see any change if brokers aren’t hearing us. It doesn’t matter how many seeds you throw on stoney ground, very little will grow. Thankfully regulation should get brokers listening and the situation is improving all the time.
FR: What advice would you give someone starting out in the industry today?
Think twice and then think again. The industry is changing massively, expect your margins to be squeezed and your costs to rise. If you’re coming into the market expecting instant gratification and easy profits you’re going to be very much disappointed. However, if it’s a challenging career you’re after, working with some forward thinking individuals in a fast paced and competitive market, well come on in – the water’s choppy but suffice to say you won’t get bored!
FR: You recently launched a new secured loan referral tool – how important is it to develop within the industry and what benefits will it bring?
We want to make things easier for brokers and multi quote does this. However, easy can’t come at the expense of accuracy or doing the right job for borrowers. Much of our system development time is being spent on processes to keep brokers on track and their clients informed. Brokers are used to a very light touch approach to second charges. That it is still possible but there are fundamental’s which need to be met and brokers must accept this or change industry. Our aim is not simply to make secured loans easy for brokers, we want to make it as easy as possible to do it right and prove you did it right. If you can’t prove it, it never happened.
FR: If you weren’t in the financial services industry, what would you be doing?
I’d be a land agent, auctioneer and chartered surveyor. That’s what I qualified to do. I would probably have a few animals too and would spend most nights in the village pub. Sounds great… Taxi for Walker!
