We’ve got a plan

We hope you have had a wonderful Christmas and New Year. We are now back fully staffed and find ourselves in 2022 – the biggest year yet for the second charge market.

As we all know, the MCD is looming and the 21st March suddenly doesn’t seem as far away and we are all at varying stages of preparedness for this game-changing new regulation, which will mean second charges will fall under the same regime as first charges.

If you are still in a state of limbo as to whether to offer second charges then you really need to decide, fast. Not least because those who don’t choose to advise on seconds will lose the right to call themselves “independent” and “whole of market”. Does anyone want to be in a position to give their customers only half of the answers?

Key Criteria & Application Guidance

If you have decided and are working towards including second charges in your offering then that’s fantastic. Even if you don’t give advice you can still refer. Here are some proactive steps you can take:

• Incorporate second charges into your sales process. This should be simple and Promise can help.
• Call Promise and use our second charge referral or specialist structuring solution to help clear cases before the March deadline – any cases which are not paid out by the deadline will need to be underwritten again under the new regime.
• Start selling second charges on the advised model as soon as possible if you want to remain independent – this should help with dealing with the pipeline.
• Whether you advise or refer second charge loans, take action quickly to benefit from the flexible criteria we are enjoying – from February it’s only going to get tighter.

www.promisemoney.co.uk

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