Precise Mortgages, the specialist lender has restructured its sales team in order to react to increasing demand from its key intermediary partners and in anticipation of MCD implementation early next year.
The MCD will radically alter the second charge lending market as it brings these loans into the MCoB regime which results in the sales processes for first and second charges becoming more aligned. The lender has therefore made the following changes to its sales force:
In order to further support packagers, specialist distributors and master brokers Liza Campion and James Briggs become dedicated National Sales Managers focused on this important group of intermediaries. Liza whose expertise in first charge lending is complimented by James’ experience in the second charge market.
Jamie Pritchard and Richard Keen will work closely with Roger Morris in supporting mortgage networks and mortgage clubs across all lending lines.
Sundeep Patel will increase his focus in the London market and Kevin Beale will continue with his drive to improve the lender’s New Build proposition.
All will continue to be led by Roger Morris, Director of Sales.
Gareth Lewis and Chris Parr are unaffected by the changes and continue to drive bridging lending.
Alan Cleary, Managing Director of Precise Mortgages says: “Precise Mortgages has a very broad product range spanning Residential, Buy to Let, Bridging and Second Charges as well as an appetite to increase New Build lending. We have been encouraging our key intermediary partners to distribute all of our product lines and this change is reacting to that shift. In addition we must anticipate the changes that are likely to occur post MCD and react accordingly so that we give the best possible support to intermediaries and their customers.”
I always struggled with the term Non-bank. To be described as something that you are not seems a bit weird. The term covers a whole array of different lenders and in essence is any lender that does not use retail deposits as a source of funding its lending activities i.e. they use capital markets or some other type of funding model instead.
Many of the new entrants in the buy to let space, most of the bridging lenders and I suppose the Peer to Peer lenders are non-banks, but what does that matter to mortgage intermediaries and borrowers? The reason that we became a bank was very simple; one of the biggest learns we took from the financial crisis is that capital markets can and will be unpredictable and if you only have one source of funding it is very difficult to build a sustainable business.
Diversification of funding has been a key priority for us for the last five years and I am sure is a major focus area for the vast majority of lenders. Mortgage intermediaries and their customers benefit from a stable lending environment and from lenders that design and launch products that help solve customers’ needs and have sustainable funding lines that allow them to continue lending even when markets become turbulent.
Quite a lot has been written recently about the re-emergence of the securitisation market and it is without a doubt a valuable source of funding to lenders all over the globe; indeed we have issued four deals over the last 18 months and have plans to do more in the future.
But one has to consider the risks and the potential for the capital markets to hit a turbulent patch is ever present. Take Grexit as a topical example; this has weighed heavy on the capital markets and has no doubt caused some institutional investors to delay purchasing mortgage bonds or demand a higher cost of funds, this could and may well have had a dramatic effect on those lenders who are reliant on securitisations to fund new mortgage business.
Whilst writing this column the Greek comedy or tragedy depending on which way you want to look at it continues at a pace, one minute a deal looks imminent and the next they are calling for a referendum which effectively is an in out vote on being in the Euro; the longer this period of uncertainty continues the more of an impact it will have on the mortgage market.
Retail Deposits have proved to be a much more reliable and predictable source of funding and are significantly more liquid than the capital markets with in excess of £1.2 trillion in UK savings accounts.
You may have read that since we became a bank we have opened over 10,000 accounts for over half a billion pounds. Of course, becoming a bank is not something everyone can or wants to do but for those lenders that can meet the very high standards that the regulators demand this will be something that they are no doubt considering.
What becoming a bank allows us to do is to manage our funding requirements with a much greater degree of certainty and I have no doubt that if we were solely reliant on securitisation we would have put our foot on the lending brake by now, at least until the Greek situation had unravelled.
There is good news for savers as well as borrowers in more firms becoming banks. Indeed the regulator has sign posted that on top of the new banks already authorised there is a significant number going through the authorisation process.
The so called ‘Challenger Banks’ have been cited as creating some serious competition for the big six amongst the UK’s neglected savers. They have occupied over 90% of the places on the Best Buy tables over the last few months with rates that are far superior than that on offer on the high street. This is a very positive development for the mortgage market and specifically for the intermediary market as many of the new banks work very closely with mortgage brokers.
Charter Savings Bank which is a trading style of Charter Court Financial Services alongside Precise Mortgages has opened over 10,000 savings accounts in the sixteen weeks since its launch. This equates to over £500m of consumer deposits.
Alan Cleary, Managing Director of Precise Mortgages says: “We became a bank because we understand that diversification of funding is critical. One of the lessons learned from the financial crisis is that capital markets and the securitisation markets can be unpredictable. Having access to consumer deposits gives us more options which in turn benefit the mortgage intermediary, as well as our borrowers.”
Challenger Banks are being cited as occupying 90% of the places in the Best Buy tables for savings accounts and that without this group of providers the situation for savers could have been a lot worse.Cleary continued: “we are focused on delivering lots of new mortgage products and improving our service to both mortgage intermediaries and borrowers across our Residential, Buy to Let, Bridging and Second Charge product ranges.”
Simon Carr, Sales Development Director
Ok, this is getting serious.
When Precise Mortgages announced its launch into the second charge market, it was a move which signalled Precise Mortgages’ intention of being the number one consideration for all mortgage intermediaries (play the theme tune – oh come on! You can have some fun whilst being deadly serious about the mortgage market). We’ve brought you an array of other products across the lending spectrum, from first mortgage residential and buy to let options, through to changing the way short term bridging finance options work for your customer. Our product teams are constantly challenging the status quo and have a room full of ideas on how they intend to continue to innovate the markets we operate in.
Our tag line – your home for specialist lending and commitment to helping those underserved by the high street, is at the forefront of our mind and pushes us to do more.
Now, if all this is not enough, some of you may have heard the name, some of you may have heard his dulcet tones and for those of you who have been lucky enough to experience one of his groundbreaking specialist lending workshops; you will no doubt have walked away with glazed eyed, yet supercharged with ideas on how Precise Mortgages can improve your customer centric solutions. That’s right; I’m talking about our Sales Director – ROGER MORRIS. We’ve rolled out the big guns into second charge lending and Roger is now also responsible for driving the second charge sales team.
So what does this tell you? For me it’s a huge tick in box – allow me to demonstrate...
• Residential Mortgages
• Residential Remortgages
• Buy to Let Mortgages
• Buy to Let Remortgages
• Residential Second Charges
• Buy to Let Second Charges
*Spoiler Alert – now you’re hooked!*
Not forgetting Gareth Lewis, our Director of Bridging Loans who is able to offer an array of regulated and non regulated bridging solutions.
• Regulated Bridging Loans
• Non Regulated Bridging Loans
Now that’s an impressive list – RIGHT? The good thing about this is that Roger and his team can now offer you a range of financial solutions and not just pigeonhole your customer into a mortgage box. Roger and the team will offer you, correction; you will be able to offer your client the most suitable financial solution.
Here’s a fact (get ready for the technical bit – it’s like the technical part of a shampoo advert – imagine the complex formula on your TV screen): you can use any of our products in conjunction with each other. Have a look at this example:
You could raise £100K, by way of a second charge, secured on your customer’s residential property (DEAL1) to place £25K deposits across 4 buy-to-let £100K purchases, raising £75K on each by way of a first charge (DEAL 2, 3, 4 and 5). I’m sure marketing would badge this as Buy to Let and Go! So, 5 Deals, from 1 lender, across a range of products – now that is what you call specialism from a specialist lender.
Now to all Mortgage Intermediaries (play the theme tune) – that’s dedication.
That’s what you need. If you wanna be the best and you wanna beat the rest. Oo-ooh! Education is what you need. (Trumpet Solo) Education’s what you need, if you wanna be a mortgage broker!
Ladies and Gentlemen of the Mortgage intermediary world – I thank you!
Simon Carr, Sales Development Director
So, May 2015 saw an important event take place – the General Election I hear you say? Nearly, but not quite – I’m talking about the launch of our second charge loan e-book, which I am sure you will all agree was a momentous, if not life changing, experience for the reader.
You know the one, where I encouraged you all to share the (second charge specific) love (aka e-book) far and wide. If this is the first time that you are hearing about the e-book, carry on reading – believe me when I say you don’t want to be the last to know about this! (Go on then, for a sneaky peak before you read the full blog you can take a look at the e-book here.)
With over 200 views, shares and likes of the e-book, I’ll admit, I’ve been impressed…But, I’ll also admit that I always want that bit more and this is where I need you and your super share skills to get this e-book out there far and wide!
Challenge accepted? It couldn’t be easier – read the previous blog below, follow the share instructions and away we go.
Why do I want to go viral?
Let’s face it; the whole is greater than the sum of its parts!
I’ll be honest with you: I don’t care who does it, be it other lenders, our Preferred Master Brokers or Mortgages Brokers (play the theme tune) and so on. This is definitely a case of the more the merrier and, after all, we are all driving the same objective, to raise the profile of second charge loans across the mortgage intermediary industry.
So here’s what you get for spreading the word. You get an e-book, let’s call it Education (see what I’ve done there - read my previous blogs), not to mention possibly one of the greatest opportunities ever presented to you. It’s not a cheap scam – there are no hidden costs, definitely no upfront fees; it’s free – think of it as a safety blanket.
In my previous blogs, I discussed education, education, education with a small pinch of dedication – know your market; become a grandmaster of your specialist noble art!
**Shocking spoiler alert** I really don’t care if Prestige Finance, Paragon, Nemo Personal Finance, Blemain Finance, Optimum Credit, Masthaven or Central Trust get deals referred to them off the back of this blog and its viral intent! What I do hope is that Master Brokers, Lenders, Mortgage Networks, Surveyors and Mortgages Brokers (play the theme tune) unite to create a truly widely spread marketing campaign, highlighting the second charge market to all mortgage advisors.
And here is how we do it....By definition going viral uses resources of others (starting with the host - LoanTalk). Well, that’s exactly what I am proposing to do. I would love nothing more than for you all to retweet, share, like (you know the score) this blog, but it has to be from Loan Talk. Basically, join me by sharing this e-book promoting the benefits for second charge loans to the Mortgage Intermediary industry.
Remember, we are promoting the benefits of a second charge loan not the benefits of Precise Mortgages (although our products are pretty hot!). Therefore, the sum of the whole - you, me and everyone, is greater than the sum of its parts – you!
Hopefully you will have read and shared my other blogs. If not please read and share, they will start to make sense – I promise you!
So education, education, education. Prepare the theme tune, we are going viral. That’s what you need. If you wanna be the best, and you wanna beat the rest. Oo-ooh! Education is what you need. (Trumpet Solo) Education’s what you need, if you wanna be a #MORTGAGEBROKER!
Ladies and Gentlemen, I present to you possibly, the greatest opportunity the mortgage broker market has ever seen – It’s called second charge loans, a facility to consider, not ignore.