Y3S Loans has reported a notable increase in interest for its products from mortgage brokers hit by the difficulties caused in getting lenders to accept mortgage applications in the wake of the new MMR rules.
The Cardiff-based second charge loan packager says that it has issued 30% more quotes in the second quarter of the year compared with the first quarter. Many brokers are running secured loan applications as a fall back solution while they are remortgaging their client.
Matt Cottle (pictured), commercial director at Y3S, said: “Our team speaks to hundreds of mortgage brokers every day and we hear the same thing all the time: ‘I’m doing a remortgage for a client but I’d like to prepare a secured loan application in the background in case the remortgage falls over’.
“Frustrated brokers are throwing their arms in the air in because through no fault of their own their clients are getting the run around. They come to us looking for a less complicated solution and they often end up finding a top-up loan for their client that works out cheaper than the intended remortgage. It’s a no-brainer for both broker and client.
“More brokers are realising that when a remortgage falls out, secured loans are often cheaper and seriously quicker alternative. For example, once we get the initial call for help from a broker, we can issue an offer of finance within 1 hour, get the paperwork hand delivered to the client within 24 hours and have pretty much everything signed and returned to our office within two days. Mortgage lenders just cannot keep up with that kind of pace.”
“It’s great to see more brokers investigating the costs of a secured loan due to MMR frustrations,” added Barney Drake, operations director at Y3S.
“However it’s very important that we educate all mortgage brokers to look at the pricing of a secured loan at every remortgage opportunity so that they can be sure they are giving their clients best advice.”
