Master loan brokers differ from other loan brokers in that they have lender accreditation to package secured loans on the lenders behalf.
By packaging a secured loan, a master broker doesn’t just find the best deals they are also approved by the lender to issue lender documents, request references and arrange valuations. Once the master broker has all the information a lender would require for a secured loan, they submit the ‘full case’ to the respective lender for them to check and complete the loan.
Gaining accreditation (or approval) from a secured loan lender is not easy as lenders recognize that to package a loan successfully requires expert knowledge of both the secured loan market (and laws surrounding it) as well as an in-depth knowledge of the specific lenders products.
Master brokers usually have access to whole or market as well, which means that whatever your circumstances they should have a secured loan lender on their panel that will consider your application, subject to status. That includes homeowners with a bad credit history and self employed with no proof of income.
Once you made a secured loan application, the master broker will usually contact you to confirm the best deal to suit your individual circumstances. If you’re happy with the quote provide and want to proceed with the secured loan, the master broker, sends you an advance copy of the proposed credit agreement and you then enter a ‘consideration period’. This is similar to a cooling off period and allows you to decide whether you wish to proceed, without any contact from the broker (or lender).
After the consideration period has ended (8 days) the master broker will send you the documents for signing, sometimes called ‘signables’. You then sign and return all the documents to the broker and they will then request and pay for a mortgage reference and a valuation. You should not pay any up front fees to any broker for their services as these contravene their agreements with each lender. The broker may charge you a broker fee, however this must be shown on the loan agreement.
Once the broker has all the documents and information from you, along with the valuation report and any references, your secured loan is ready to be submitted to the lender for completion and payout. You then receive the loan cheque from the lender to use as you wish.
Remember the most important thing when trying to find a secured loan, is to use the services of a reputable master loan broker who will also have the following ‘warning’ notice on their site and all correspondence.
THINK CAREFULLY BEFORE SECURED DEBTS AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU FAIL TO KEEP UP REPAYMENTS ON A MORTGAGE OR OTHER LOAN SECURED ON IT.
