Please note that you can expand any of the screenshots by right-clicking them and selecting open in a new tab. The applicable screenshot follows each sentence.

In this guide

Both residential and buy to let options have the ability to source on second charge loans, which are shown on the Launcher screen and the Start tab.

Sourcing Second Charge Loans

Second charge sourcing is fully integrated into MortgageBrain Classic to enable the ability to source on these products, for both residential and buy to let, either by comparing them to remortgage deals or sourcing them on their own.

Currently, as the second charge market stands, there are two routes for brokers to obtain a second charge – either via a master broker (these are typically non-advised although some master brokers offer advised products too) or direct to lender, which are advised.

MortgageBrain Classic caters for both options, although the market may change so there may be a requirement to adapt these filters in the future.

Back to top ^

Start Tab

Within the Purchase Type section, when the remortgage option is selected, this will, by default, switch on both the ability to source on non-advised and advised second charge products. If only non-advised second charge products are to be sourced, this can be carried out by switching off the ‘Second Charge Advised?’ checkbox accordingly. Similarly, if only remortgage products are to be sourced, the ‘Include Second Charge’ option can be unselected.

If second charge products only are to be sourced, then this option is also catered for by selecting the appropriate radio button, again there is an option to source on non-advised or advised products as required.

When remortgage and second charge products, or just second charge products, has been selected, then within the Current Mortgage Details section, the client’s current outstanding balance for their existing mortgage and the client’s existing monthly payment must be entered. This is to enable the software to calculate whether it would be more suitable for the client to remortgage for the new loan amount or continue with their current mortgage and take a second charge.

Both of these fields are mandatory, for second charge products, and therefore a figure has to be entered before continuing with sourcing.

If the client’s current lender has been selected within the Specify Current Lender box but they do not allow a second charge to sit behind them, a warning message will appear.

Once the message has been acknowledged, the filters below can be amended and sourcing can continue but obviously not for a second charge product.

Back to top ^

Sourcing Tab

Moving into the sourcing tab, the information already collected is automatically carried over. In this remortgage and/or second charge scenario, the total loan amount should be entered into the Loan Required box, being the client’s current outstanding balance plus the extra that they wish to borrow. The text under the loan required box confirms that the figure includes the additional borrowing amount. The software can then calculate the LTV on the property price and loan required.

This screen also shows the term is now calculated in years and months.

The Schemes Included section allows the ability to first review whether a remortgage deal would be best for the client and then review a second charge option using the multiple tab function which is a standard feature within the software.

At the bottom of the screen, the software confirms that for this clients’ scenario, there are just under 6,000 remortgage products available and just over 600 second charge products that may fit their requirements.

Back to top ^

Client Details Tab

A new input box included on the system is the ability to record the date the client started their current employment. This also applies to Applicant 2. This is important for second charge sourcing as lenders will specify the minimum length of time in current employment. Although more relevant to the second charge market, the box will be seen for residential and BTL sourcing as well.

Back to top ^

Product Filters Tab

Another filter which is very useful for remortgage and second charge sourcing, is the Remortgage Reasons options. Although this will default to Not Specified, it is useful to select a reason for the client’s request so that the products are filtered accordingly. The majority of second charge lenders will accept debt consolidation, hence this option is chosen for this scenario.

Once all the filters required have been applied, click on the Source Now button to first look for remortgage products.

Back to top ^

Scheme List > Source 1 – remortgage products

Having chosen the remortgage option from the Schemes Included section in the Sourcing tab, the remortgage products are displayed as Source 1. The initial monthly payment is for the total remortgage amount.

There is a new calculated column called Interest, fees & ERC over N years. This column shows the cost over N years including the full cost of the added fees with interest, so this figure will always be higher if you add fees to the loan - unlike the Cost inc/ex ERC figures. This column applies equally to first and second charge products. This value is the sum of the initial fees (whether added or not), the interest on the loan and on any added fees, the ERC (if there is one) and the final fees. It is everything that you have to pay apart from the repayment of the original loan amount (before any fees are added).

For the remortgage scenario, the pop out bar on the right hand side of the screen, within the Details tab, displays the monthly payment for the schemes in the list and also confirms the client’s existing monthly payment and existing mortgage on their current loan.

The fees & rates screen is ‘dynamic’ which means that only fees that are required for the product will be displayed – there will never be any fees or fee names in this section. This applies to all first and second charge products, whether residential or buy to let.

Back to top ^

Scheme List > Source 2 – second charge products

Having reviewed the remortgage deals, the multiple tab function allows the remortgage deals to be retained whilst second charge products are sourced alongside it. To use this function, simply select the new tab icon (highlighted) or the new tab button, both carry out the same function.

This function returns back to the Sourcing tab where the second charge radio button can be selected.

Other filters can also be applied, terms changed if necessary, etc. Once selected, click on Source Now to go back to the scheme list, this time with the second charge products that fit the client’s requirements.

Now Source 2 is displayed at the top of the screen – Source 1 is still the remortgage products that were sourced previously.

The functionality on this screen is exactly the same for second charge products as it is for residential or buy to let products. The second charge lender names and master broker names are displayed in the lender column on the left hand side.

There are also a few new columns specific to the second charge scheme list – Combined Initial Payment; Combined cost inc fees & ERC (n yrs); Combined cost inc fees ex ERC (n yrs) and Master Broker fee. The ‘combined’ columns all contain the client’s existing mortgage details in the calculations. For example, the combined initial payment takes into account the client’s existing monthly payment, which was entered at the outset within the current mortgage details) plus the monthly cost of the second charge loan.

The pop out bar, on the left hand side of the scheme list, also shows some differences for the second charge scenario – the title Secured indicates the type of product that is being reviewed, the other information is specific to the second charge product plus the confirmation details of the client’s existing monthly payment and existing outstanding loan. In the Second Charge section at the bottom it confirms the DTI ratio and also the minimum current employment information.

Back to top ^

Four Box Icon

With the multiple tab function, there is no limit as to how many scenarios can be displayed for the client – different terms; different payment types; different loan amounts; different filtering etc, but to check the criteria for each of the tabs, simply click on the ‘four box’ icon at the top of the screen and this will show the critieria within each tab. To return to the required tab, simply click on the relevant ‘Source’ box and it will return you to the scheme list.

Back to top ^

Reload Function

The software saves all of the tabs created for the client’s search, so if research is carried out prior to seeing the client and multiple sources are done, when sourcing with the same client at a later date, the software will automatically load each of the original tabs created, with the filters used in each scenario, but with current product data so the filters are retained and the product data is all up to date saving time and negating the need to write down each sourcing scenario and the results as part of the research.

The Reload button is available within the Start tab.

Back to top ^

Comparison Function

There are some new checkboxes displayed on every tab, available for first or second charge products, whether a standard residential search or buy to let search. This allows the ability to compare as many products as required across all tabs. So when sourcing for remortgage and second charge products, it is easy to compare products on the screen to discuss and decide which option may be the best for the client.

To compare schemes on the screen, there is no limit to the number. Simply check all of the boxes of the schemes required to compare for the remortgage and then move to the second charge tab and select as many products required to compare from this tab.

Once the products have been selected, click on the Compare button at the top of the screen.

This displays an onscreen comparison, in this scenario, of both remortgage and second charge products. The information is all product specific, apart from the section highlighted in the middle – Total initial monthly payment and the two lines below.

In this scenario, the highlighted box shows that the monthly payment for the two scenarios (client remortgages for £140,000 or client continues with existing loan of £100,000 and takes a second charge of £40,000) is only slightly different, however the cost over the term highlights the second charge is the cheaper option.

The comparison can be printed out and will be automatically saved to the client file. Although there is no limit to the number of schemes displayed on screen, the print out is limited to four schemes, purely so that it fits onto an A4 portrait page.

If the print button is pressed with more than four schemes being displayed, a message will appear on screen.

To reduce the number of schemes to four, scroll to the bottom of the comparison screen and select the Hide option for each scheme that is to be ‘hidden’ from printing.

Once the schemes have been chosen, simply print out the screen and close the window down. More comparisons can be displayed and printed if required.

The ‘hidden’ schemes can also be displayed again by selecting the Show All button allowing multiple print outs of the comparison screen if required.

Back to top ^

Producing an ESIS

Once the product has been chosen, then an ESIS can be printed. Note that there is no KFI option as second charges only came under regulation with MCD and therefore only an ESIS can be produced, not a KFI.

There is no difference to the functionality to produce an ESIS for a second charge product, it follows exactly the same process as for a standard residential or buy to let illustration production.

All of the standard supporting documentation is produced with the second charge ESIS and all of the documentation is saved back to the client file as you would expect.

Back to top ^

Browse Mode and Second Charges

Browse mode is available if you wish to browse second charge products only (not remortgage and second charge combined). Browse mode can be accessed without inputting any specific client data, however there is still a requirement to enter the client’s current outstanding balance and current monthly mortgage payment before moving into the browsing of schemes.

Moving into the scheme list, all products in the side bar will be displayed allowing for the client’s specific criteria to be input. You will notice that no columns will be calculated at this stage as the software requires the figures to be input before able to display specific costings.

As information is keyed in and the figures applied, using the Apply Changes button, the scheme list will calculate the columns and filter out products accordingly.

Note that it is not recommended an illustration is produced from Browse mode and a warning box appears if this is tried.

Back to top ^

Help Text

The Help Text has been updated within the software to provide a more comprehensive explanation of areas within the software. Available from within the scheme list, it has now been broken down into specific areas.

Back to top ^

Did this answer your question?