TL;DR: The voucher system is a streamlined referral process that allows professional introducers to earn commission by passing leads to Promise Money. It provides a structured way to track cases for specialist products like bridging loans and second charges while ensuring your property remains at risk if repayments are not met.

How does the “voucher” system work exactly?

In the complex world of UK financial services, finding the right home for a client’s specific needs can be challenging. For many brokers, accountants, and estate agents, the “voucher” system offered by Promise Money represents a simplified bridge between identifying a client’s need and securing a specialist loan. This system is primarily designed for professionals who wish to introduce clients for products they may not specialise in themselves, such as second-charge mortgages or bridging finance.

The voucher system acts as a formal tracking mechanism. When an introducer refers a client, a digital or physical “voucher” or lead record is created. This ensures that the original source of the business is recognised and that the professional who made the introduction is compensated fairly once the case reaches completion. It allows the introducer to stay focused on their core business while Promise Money manages the heavy lifting of the application process.

The Step-by-Step Process of the Voucher System

To understand how the “voucher” system work exactly, it is helpful to look at the journey from the first referral to the final payment. The process is designed to be transparent and efficient for both the introducer and the end client.

• Step 1: Identification: A professional partner identifies a client who needs specialist finance that the partner cannot provide directly. This could be a homeowner looking for a second-charge loan to consolidate debt or a property investor needing a bridging loan.
• Step 2: Submission: The partner submits the client’s details through the Promise Money portal or via a dedicated contact. At this point, the “voucher” is effectively generated in the system, linking the client to the introducer.
• Step 3: Initial Assessment: Promise Money’s team of experts reviews the lead. They look at the client’s requirements and determine which lenders might be a suitable match.
• Step 4: Client Consultation: If the lead is viable, the specialist team contacts the client to provide advice and gather the necessary documentation. The introducer is often kept in the loop regarding the progress of the case.
• Step 5: Completion and Payment: Once the loan is finalised and funds are released to the client, the commission associated with the “voucher” is calculated and paid to the introducer.

Why Professionals Use the Voucher System

The primary benefit of this system is access to expertise. Many financial professionals encounter clients with “non-standard” needs. For example, a client may have a complex income structure or a less-than-perfect credit history. In these instances, a standard high-street mortgage may not be an option. By using the voucher system, the introducer can still help their client find a solution through Promise Money’s extensive panel of specialist lenders.

Furthermore, it helps manage regulatory risk. For intermediaries who are not authorised to provide advice on certain products—such as regulated bridging loans or second-charge mortgages—the voucher system allows them to “introduce only.” This means the advice and the compliance responsibility rest with Promise Money, protecting the introducer while still providing the client with a professional service.

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Bridging Loans and the Voucher System

A significant portion of the business processed through the voucher system involves bridging loans. These are short-term loans designed to “bridge” a gap in financing. They are typically used for property purchases, renovations, or when a chain breaks during a house move. It is crucial to understand that bridging loans operate differently from standard mortgages.

There are two main types of bridging loans: open and closed. A closed bridging loan has a fixed exit date, usually because the client has already exchanged contracts on a property sale. An open bridging loan has no fixed end date, though it usually has a maximum term of 12 months. Open bridging loans are generally considered higher risk because the exit strategy is less certain.

In most cases, bridging loans do not require monthly interest payments. Instead, the interest “rolls up” and is paid in a lump sum when the loan is cleared. This can be helpful for cash flow, but it means the total debt grows over the term of the loan. It is important to remember that your property may be at risk if repayments are not made. If you or your client fails to settle the loan at the end of the term, it could lead to legal action, repossession, increased interest rates, and additional charges.

The Role of Second Charge Mortgages

Another common product found within the voucher system is the second-charge mortgage. This is a secondary loan secured against a property that already has a primary mortgage. Clients often use these to raise capital without disturbing their existing low-interest first mortgage. For example, if a client has a “tracker” or “fixed” rate that is very competitive, they may prefer a second charge rather than remortgaging the entire property and losing that rate.

Because these loans are secured against property, they typically offer lower interest rates than unsecured personal loans. However, they carry the same risks as any other secured debt. If the borrower cannot maintain the payments, the lender has the right to take possession of the property to recover their funds.

Compliance and Transparency

The voucher system is built on a foundation of transparency. In the UK, financial services are strictly regulated by the Financial Conduct Authority (FCA). You can learn more about how financial products are regulated by visiting the FCA website. Promise Money ensures that all referrals processed through the voucher system comply with these regulations.

For the introducer, this means that the commission structure must be clear. For the client, it means they must receive a full explanation of the costs, risks, and benefits of the loan. No loan is ever “guaranteed” or “certain,” as every application is subject to underwriting, valuation, and affordability checks. The voucher system simply makes the path to these checks more efficient.

Benefits and Potential Risks to Consider

While the voucher system offers many benefits, it is important to maintain a balanced view. For the professional introducer, the benefits include a new revenue stream, better service for their clients, and reduced administrative burden. For the client, the benefit is access to a wider range of financial products that may not be available on the high street.

However, there are risks to consider. For the client, taking on secured debt is a serious commitment. If the property market fluctuates or if their personal circumstances change, they could find themselves in a difficult position. Additionally, specialist finance often comes with higher fees and interest rates than standard lending products. It is always advisable for clients to consider all their options, including unsecured borrowing or using savings, before committing to a secured loan.

People also asked

Who can use the Promise Money voucher system?

The system is generally designed for professional intermediaries such as mortgage brokers, estate agents, accountants, and solicitors who have clients needing specialist finance. It allows these professionals to refer cases that fall outside their usual area of expertise.

Is there a cost to join the voucher system?

Typically, there is no upfront cost for a professional to register as an introducer. The system is based on a commission-sharing model where the introducer is paid from the fees generated when a loan successfully completes.

How long does it take for a voucher to pay out?

Payment is usually made shortly after the loan has completed and Promise Money has received the commission from the lender. The timeframe depends entirely on how quickly the loan application moves through the legal and valuation stages.

Can I track the progress of my referrals?

Yes, the voucher system usually includes access to a partner portal where you can see the current status of any client you have introduced. This ensures transparency and helps you keep your client informed throughout the process.

What happens if a client is rejected?

If a client does not meet the lending criteria, the case will be closed and no commission will be paid. Promise Money will typically explain the reasons for the rejection, allowing you to discuss other potential avenues with your client.

Summary of the Voucher System

In conclusion, the “voucher” system is a vital tool for the UK’s financial intermediary market. It provides a bridge between generalist advice and specialist lending, ensuring that clients with complex needs can still find suitable financial products. By linking introducers to experts in bridging loans and second-charge mortgages, the system helps maintain a healthy, competitive market.

Professionals should remember that while the system simplifies the referral process, the underlying products carry significant responsibilities. Always ensure that clients are fully aware that their home or property is at risk if they do not keep up with repayments. When used correctly, the voucher system is a professional, efficient, and rewarding way to handle specialist finance in the UK.