Y3S Loans has claimed that the majority of mortgage network Appointed Representatives (ARs) are confused about their choices when it comes to introducing second charge loans enquiries to third parties for processing.
The Cardiff-based specialist packager is offering a bespoke PI policy underwritten by one of the UK’s largest insurers, specifically covering the advice that Y3S and Chaseblue Loans gives to the clients of ARs.
“It’s a political hot potato at the moment, a complete grey area,” said Y3S’s Matt Cottle (pictured).
“We’ve brokered thousands of secured loans for the clients of ARs and we speak to hundreds of these guys every month so we get a very real and rounded view of what’s going on. With the advent of MCD almost upon us, ARs are confused about what’s wrong and what’s right. Many believe that they must use their network or nobody at all, but in fact the reality is quite different; most mortgage networks are stacked with other priorities and happy for their ARs to find their own solution.”
Joint CEO Barney Drake added: “Some mortgage networks do specify that ARs must use a named packager in order to receive their kickbacks, but we speak to ARs every day that are unwilling to change long-standing relationships with loan packagers, no matter what is dictated to them.
“Those ARs that speak out are being given the green light by their network to go their own way despite the contractual obligations imposed upon them. Our PI covers provides a safe haven to every appointed representative in the UK. They don’t need the extra hassle of wondering if they are doing the right thing by their client, we’ve taken care of it for them.”
your PI may cover the advice related to the loan but not the recommendation of a secured loan over other products in the market – which is the responsibility of the AR and the network as the fact find has been completed in the first instance by them. Networks have processes for this to ensure they are compliant and the customer journey is transparent- this is surely an attempt to steal AR business where you can Matt rather than win the business through business ethics