To help brokers retain more profit on second charge cases during the COVID period, Promise Money has cut its second charge packaging rates and now passes on all lender’s commission to the introducer broker.
Steve Walker (pictured), managing director at Promise Money, said: “On a typical £50,000 loan brokers could increase their earnings by over £1,000 per case and still undercut many direct to consumer loan specialists.
“Our fees have been reduced to £895 and the broker can keep 100% of the lender commission which is typically 2%.
“We think this is important right now as some brokers have lost touch with second charges and many are busy dealing with purchase mortgages and products transfers.
“We want to send a clear message that second charges are not only a viable alternative for many customers but criteria is continuing to improve as lenders relax.
“We also want to encourage brokers to keep second charges front of mind by ensuring that they are better rewarded and their customers get better deals too.
“When you are busy it’s all to easy to overlook less familiar products and this can lead to customer detriment and lost income opportunities.
“It’s not just about reducing fees. The service has to be bang on and we have a reputation for trying harder than others which comes from having experts who have spent over 30 years placing and packaging secured loans.
“Despite any challenges that the current market may bring, brokers must make second charge loans an integral part of the customer offering and take advantage of the significant enhancements Promise Money has made to its secured loan service and pricing.”