Freedom Finance’s intermediary division has provided details its available options for intermediaries who will deal with second charge loans when the Mortgage Credit Directive (MCD) comes into force on 21 March.

There are three options, which range from pre-packager, introduction and hybrid.

The three options provided are:

Going solo
The master broker acts as a pre-packager and does not have any direct contact with the intermediaries client. Using the sourcing portal, intermediaries are able to see accurate options and quotes on offer for their client, based on their credit profile and history.

It is aimed at intermediaries wishing to advise their customers themselves throughout the process and who feel comfortable with compliance and responsibility of each sale. Should an alternative offer be needed, Freedom Finance will provide a full summary of why the sale could not be processed and offer alternative options for the intermediary to discuss with the customer.

Introduction only
Intermediaries can either telephone or send an email to the dedicated intermediary broker support team and pass their customers’ contact details onto Freedom Finance who will then deal with all steps of the process from sourcing, packaging, processing and finally completion.

Hybrid
Intermediaries can use the sourcing portal and go through a non-advised route. This allows intermediaries to gather accurate quotes for client loans, based on their individual circumstances, without risking damage to their credit score and while still retaining control of the entire end-to-end process. The intermediary is provided with a comparison and will be able to advise their client of all the options on offer before passing them over to their recommended master broker who will be able to complete the sale.

Nicola Mooney, head of secured, intermediary & business finance at Freedom Finance, said: “With the long awaited MCD now firmly on the horizon, Freedom Finance has been able to offer options to advisors that will help them adapt easily to the changes. Over the last year we have been training our team, recruiting the right talent and updating our processes to ensure we and all the intermediaries we work with are fully equipped.

“As the MCD steadily becomes implemented, the second-charge market will continue to develop and blend even further into the mainstream mortgage market. Many intermediaries will have different needs when it comes to incorporating seconds within their sales process so it is vital we offer the best options and steps to ensure they are truly familiar with all the options available. At Freedom Finance we believe in being adaptable and flexible to market requirements and we aim to ensure the needs of intermediaries are met with a personal and dedicated service that holds the customer at the heart of all our decisions.”