Christine Toner talks to Paul McGerrigan, CEO, Loan.co.uk about what makes the firm tick.

What makes Loan.co.uk different?

We put our partners first. The strength of our brand and the relationships we build with our lenders, our introducers and their customers sets us apart. We recognise that every case is different and will always work hard on our key objective, which is to enhance the service that our introducers offer their clients. We do this by expanding their product range and helping them create a one stop shop for their customers. Everything we do is designed to support our relationships. We have developed the brand to be customer friendly so our introducers can feel confident telling their customers that they work with us.

Does the concept remove the need for broker advice?

MCD will bring education to the forefront. Brokers will need to educate introducers on the advantages (and disadvantages) of second mortgages to ensure that their customers receive the appropriate level of advice and are referred at the right time. In many cases introducers will be empowered to offer advice on second mortgages along with their core products – where they lack confidence or knowledge to do so, it will remain the responsibility of the broker to provide this advice. This is a decision to be taken between second mortgage broker and mortgage firms or networks.

What do you think will be the biggest change we’ll see following MCD implementation?

I think we will see a much greater awareness of second mortgages among mortgage introducers and IFA’s and an openness to receive training and education on the products. This in turn will lead to more customers being advised to utilize secured loans when they are best advice. It is the job of second mortgage brokers and lenders therefore to spread the word and the knowledge to satisfy this requirement.

What challenges will the second charge market face this year?

There will no doubt be a significant period of bedding in following MCD. Lenders and second mortgage brokers alike will need to make sure that their staff and systems are ready to support new introducers, looking for advice and assistance.

With any major legislative change comes uncertainty as different companies interpret the requirements in slightly different ways. Different systems, documentation and processes take time to settle in. It will be Q3 before things start to settle down and everyone is more comfortable in the new world.

What advice would you give to brokers who are embracing seconds for the first time, under MCD regulation?

Get up and talk to us! Whilst the broker’s core products – further advances and remortgages – remain “best advice” for the majority of their clients, second charge facilities will open up new opportunities to help both existing and new clients. The fact find and analysis of the customer’s requirements and circumstances will, if properly executed, highlight opportunities for second charge business and a chance to help more of their customers find solutions when trying to raise extra funds.

What makes Loan.co.uk different?

We put our partners first. The strength of our brand and the relationships we build with our lenders, our introducers and their customers sets us apart. We recognise that every case is different and will always work hard on our key objective, which is to enhance the service that our introducers offer their clients. We do this by expanding their product range and helping them create a one stop shop for their customers. Everything we do is designed to support our relationships. We have developed the brand to be customer friendly so our introducers can feel confident telling their customers that they work with us.

Does the concept remove the need for broker advice?

MCD will bring education to the forefront. Brokers will need to educate introducers on the advantages (and disadvantages) of second mortgages to ensure that their customers receive the appropriate level of advice and are referred at the right time. In many cases introducers will be empowered to offer advice on second mortgages along with their core products – where they lack confidence or knowledge to do so, it will remain the responsibility of the broker to provide this advice. This is a decision to be taken between second mortgage broker and mortgage firms or networks.

What do you think will be the biggest change we’ll see following MCD implementation?

I think we will see a much greater awareness of second mortgages among mortgage introducers and IFA’s and an openness to receive training and education on the products. This in turn will lead to more customers being advised to utilize secured loans when they are best advice. It is the job of second mortgage brokers and lenders therefore to spread the word and the knowledge to satisfy this requirement.

What challenges will the second charge market face this year?

There will no doubt be a significant period of bedding in following MCD. Lenders and second mortgage brokers alike will need to make sure that their staff and systems are ready to support new introducers, looking for advice and assistance.

With any major legislative change comes uncertainty as different companies interpret the requirements in slightly different ways. Different systems, documentation and processes take time to settle in. It will be Q3 before things start to settle down and everyone is more comfortable in the new world.

What advice would you give to brokers who are embracing seconds for the first time, under MCD regulation?

Get up and talk to us! Whilst the broker’s core products – further advances and remortgages – remain “best advice” for the majority of their clients, second charge facilities will open up new opportunities to help both existing and new clients. The fact find and analysis of the customer’s requirements and circumstances will, if properly executed, highlight opportunities for second charge business and a chance to help more of their customers find solutions when trying to raise extra funds.