Stonebridge has removed The Loans Engine from its panel as it no longer feels the master broker ‘is representative of whole of market mortgage advice’.
Last month Mortgage Introducer reported that The Loans Engine had attempted to significantly increase the proc fees it is paid for introducing second-charge business (read more).
In an email sent to brokers Stonebridge said it had decided to remove the master broker after ‘careful consideration’ and warned that The Loans Engine will no longer receive introduced leads. However any previous leads will be processed.
Lender Precise Mortgages removed The Loans Engine from its Premier Panel last month.
Back in July, The Loans Engine started providing free second charge advice and sourcing whilst charging a £295 application fee in lieu of a master broker fee.
The application fee is then payable once the customer decides to proceed with the loan and after the lenders DIP is confirmed.
The change represented a significant fee saving on traditional master broker models – for example a customer taking out a £30,000 loan could, under other models, be paying approximately £3,000 in fees.
The Loans Engine claims to be responsible for one in 10 of all UK second charge loans.
Both Stonebridge Group and The Loans Engine have declined to comment.