London Money Group is to launch into the second charge mortgage market under the brand London Money Loans.
Founders Martin Stewart, Scott Thorpe and Dan Barker believe second charge loans are one of least utilised financial products.
Thorpe said: “We believe the market is set for rapid growth in the years ahead, particularly in London and the South East where clients tend to come with more complicated back stories. We understand that trying to enter this market requires a different approach and leveraging an existing London centric brand like London Money made logical sense.
“Furthermore, this is a broker driven proposition with like-minded people helping and encouraging those that may be a little lost with all the recent changes.”
Stewart added: “Under the new MCD rules mortgage brokers now have to consider the second charge option for their clients. I have spent a lot of time in the past six months canvassing brokers and many of them were confused by this specialist market. We now want to help change this and so with continued support and training for all introducers we hope to educate brokers and encourage them to embrace change. I firmly believe that where there is regulation there is also opportunity.
“I came late to this sector and only did my first case less than a year ago. Since then however I have helped our clients raise in excess of £700,000 in nine deals. Each client needed money for a variety of reasons and the traditional first charge lender market could not or would not offer a viable option. If I can identify this level of business in a short space of time I am confident others can as well. It comes down to educating the broker and helping them to see that second charge mortgages are a viable option.
“I believe more mortgage prisoners have been created from MMR and MCD than from the credit crunch itself and second charges have gone some way to addressing that issue for our clients.”
The main office will be based in Victoria in London, although the packaging will be done in South Yorkshire headed up by Thorpe who also owns Access 4 Finance.
He said: “Having two offices will give us the best of both worlds – being able to meet introducers and clients inside London, and also being able to take advantage of the low overhead cost outside of the South East. This will then enable us to pass these savings onto our introducing brokers.”
London Money Loans will also be holding a number of ‘masterclasses’ in conjunction with key secured loan providers. The first will be on 4 May in the Victoria office and the first guest speaker will be Maeve Ward, sales director at Shawbrook Bank.
She said: “We’re delighted to announce this key partnership with London Money Loans, we have known the individuals for many years and look forward to helping and supporting this new proposition.”