How to show value to the customer without going too far?
How to show value to the customer
Many DA brokers face the same conundrum when it comes to secured loans. How can they offer a valuable service to their customers without leaving themselves at risk of compliance failures or mis-selling? By their nature, DA brokers like to be in control of their sales. While networks may advise brokers to simply refer more complex cases, directly authorised intermediaries often want to stay involved.
It’s actually very easy to achieve this, if you partner with a good firm that clearly states where the responsibility for the sale lies both to you and, importantly, your customers.
If the broker wants to stay in control of the sale, a good master broker will offer them all the guidance they need to do so, including providing them with a checklist of questions to ask to ensure all bases are covered.
What’s more the partner firm will provide the broker and the customer with a letter which clearly states their role as a packager, outlining the fact the broker is ultimately responsible for giving advice.
This allows the brokers to show his worth to the consumer and keep control of the sale while still having the support and guidance to ensure he is not making any mistakes.
Many brokers use packagers in the first charge market when they go off panel and this process is really no different to that. Indeed, if anything, it is even more straightforward as, in the secured loan world, lenders require much more from packagers – including writing references and instructing the valuation – thus making the broker’s job even easier.
Make sure the firm you partner with prioritises compliance, and includes correspondence with customers in that, and you’ll be able to retain the sale with peace of mind.
01902 585052
Promise Money is a broker not a lender. Therefore we offer lenders representing the whole of market for mortgages, secured loans, bridging finance, commercial mortgages and development finance. These loans are secured on property and subject to the borrowers status.
More than 50% of borrowers receive offers better than our representative examples
The %APR rate you will be offered is dependent on your personal circumstances.
Mortgages and Remortgages
Representative example
Borrow £270,000 over 300 months at 7.1% APRC representative at a fixed rate of 4.79% for 60 months at £1,539.39 per month and thereafter 240 instalments of £2050.55 at 8.49% or the lender’s current variable rate at the time. The total charge for credit is £317,807.66 which includes £2,500 advice / processing fees and £125 application fee. Total repayable £587,807.66
Secured / Second Charge Loans
Representative example
Borrow £62,000 over 180 months at 9.9% APRC representative at a fixed rate of 7.85% for 60 months at £622.09 per month and thereafter 120 instalments of £667.54 at 9.49% or the lender’s current variable rate at the time. The total charge for credit is £55,730.20 which includes £2,660 advice / processing fees and £125 application fee. Total repayable £117,730.20
Unsecured Loans
Representative example
Annual Interest Rate (fixed) is 49.7% p.a. with a Representative 49.7% APR, based on borrowing £5,000 and repaying this over 36 monthly repayments. Monthly repayment is £243.57 with a total amount repayable of £8,768.52 which includes the total interest repayable of £3,768.52.
THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME
REPAYING YOUR DEBTS OVER A LONGER PERIOD CAN REDUCE YOUR PAYMENTS BUT COULD INCREASE THE TOTAL INTEREST YOU PAY. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT.
Promise Money is a trading style of Promise Solutions Ltd – Company number 04822774Promise Solutions, Fullard House, Neachells Lane, Wolverhampton, WV11 3QG
Authorised and regulated by the Financial Conduct Authority – Number 681423The Financial Conduct Authority does not regulate some forms of commercial / buy-to-let mortgages
Website www.promisemoney.co.uk