The majority of appointed representatives of mortgage networks are confused about their choices when it comes to introducing second charge loans enquiries to third parties for processing, according to specialist packager Y3S Loans.

The firm has mitigated the perceived risk taken by AR’s who wish to use an external packager for their failed remortgage applications by offering a bespoke PI policy underwritten by one of the UK’s largest insurers, specifically covering the advice that Y3S and Chaseblue Loans gives to the clients of ARs.

Matt Cottle of Y3S said: “It’s a political hot potato at the moment, a complete grey area.

“We’ve brokered thousands of secured loans for the clients of ARs and we speak to hundreds of these guys every month so we get a very real and rounded view of what’s going on. With the advent of MCD almost upon us, ARs are confused about what’s wrong and what’s right.  Many believe that they must use their network or nobody at all, but in fact the reality is quite different; most mortgage networks are stacked with other priorities and happy for their ARs to find their own solution.

“Some mortgage networks do specify that ARs must use a named packager in order to receive their kickbacks, but we speak to ARs every day that are unwilling to change long-standing relationships with loan packagers, no matter what is dictated to them”, continued Joint CEO Barney Drake.  “Those ARs that speak out are being given the green light by their network to go their own way despite the contractual obligations imposed upon them.  Our PI covers provides a safe haven to every appointed representative in the UK.  They don’t need the extra hassle of wondering if they are doing the right thing by their client, we’ve taken care of it for them.”

Y3S Group consists of Y3S Loans, Y3S Bridging & Commercial employing 89 people in specialist finance across 3 offices in South Wales.