Loan provider Promise Solutions has made a free audit trial available to its brokers, to reassure them when selling secured loans to clients. The sourcing platform at Promise is useful to brokers when giving advice on what loans a customer should undertake, all the information is to hand – including costs, underwriting, declined lenders, application records and considerations. Whenever the details are changed, the document is updated and makes it clear to both client and broker what’s what with their loan application.
Managing Director of Promise Solutions, Steve Walker commented that; ‘Many advisers have historically believed that the exclusion of secured loans from Financial Services Authority regulation permits a much more relaxed approach to the sales process. However, the real issue is about having an appropriate sales process in place irrespective of the product offered.’ He went on to stress that it was the responsibility of the insurance adviser to communicate effectively with their clients, to make sure they know what products are on offer, and to undertake the correct research to make a recommendation. Mr Walker also praised the tools usefulness when looking for a preferred option amongst insurance products; ‘Some networks also take responsibility for brokers’ advice on secured loans and this system is a must for them. With brokers’ advice under the eye of both claims companies and the regulator, we need to learn from the Payment Protection Insurance sector and ensure the sales process across FSA regulated and ‘unregulated’ products are well documented.’ He added that ‘as case law evolves and precedents are set the interpretation of best practice will also change and those found lacking may lay themselves open to attack in the future.’
Mr Walker also said that if a secured loan uk is not the best option for a client, brokers will find it much easier to demonstrate to them why they should take another route to obtain a loan. This is likely to give brokers more credibility within the market, and help them sell loans and mortgage deals. Before this trial was introduced, there was no way for the providers to prove that they have done their utmost to offer the best deal. ‘Given the sourcing system,’ He said, ‘and that the reports are free to registered introducers, we see no reason why a mortgage broker wouldn’t use them every time when looking at capital raising options for their clients.’
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