Christine Toner catches up with TFC Homeloans managing director Nigel Payne
You joined TFC almost a year ago – how have you found your first year at the helm?
Very busy, hugely positive and extremely exciting.
My biggest challenge at the moment is prioritising the opportunities we have. We currently have new regulation in the form of the MCD, the relocation of our head office to central Manchester and lots of cases to process on behalf of our broker partners. So it’s all go!
There’s been plenty of change to contend with, how have you found the changeover to MCD?
I have worked in a regulated environment for most of my career, so it’s nothing new for me. As with any regulatory change it presents opportunities, and we have seized them to create a competitive advantage by going the extra mile for our brokers.
The timescales are always a challenge when you have a business to run at the same time, but we are now in full flow processing MCD-compliant loans for our brokers and their clients.
What challenges have you faced and what went better than expected?
Recruitment has been the biggest challenge, as everyone in this industry is on the recruitment trail at the moment. Getting good, experienced people is always a challenge but hopefully relocating the office to Manchester will help.
Do you think we’ll see many mortgage brokers looking to sell second charges direct?
I think we need to distinguish between brokers advising on a second charge and brokers having a direct relationship with a second charge lender. The former will grow over time but not many brokers, apart from the larger ones, are likely to take the route of trying to deal directly with lenders.
Will we see a rise in the number of second charge loans taken out this year?
It’s possible, although by no means a forgone conclusion. Nobody really knows how the MCD will impact this sector. What we do know is that the main reasons for a second charge loan being more appropriate for a client, such as a low mortgage rate or a mortgage with an ERC, are strong fundamentals at the moment.
Can first charges and second charges really be viewed in the same way by brokers like the FCA wants?
I would argue that a second charge is easier than a remortgage and therefore brokers should embrace the second charge market. We are currently finding that many brokers are relying on us to provide the advice to the client but, over time, I think this will change as more brokers become comfortable with second charges.
What are your plans for TFC this year?
We have hugely exciting plans for 2016. Some are already underway such as the relocation to Manchester, recruitment of new staff and the implementation of new technology, but others are still under wraps and will be announced when the time is right.