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Brokers & Introducers
ARE YOUR CLIENTS' IN FINANCIAL DIFFICULTY?
FREE ACCESS TO MORTGAGE BROKER DEBT ADVISORY SERVICE
Mortgage Brokers and other professional advisors can obtain free access to the services of Re10, a national firm of insolvency practitioners and business turnaround advisors who specialise in providing solutions to individuals with debt problems.
The main benefits include:
- free access to technical support and advice in relation to debt problems
- improved levels of customer service
- increased levels of business
- adherance to compliance guidelines as set out in MCOB 4.7.6
Access to the service
To register with us simply complete and return a Broker Agreement (click here to download Broker Agreement - PDF : 25KB)
Please call Re10's help line on 0800 169 1536 for specific advice or to use as a sounding board if you are unsure about anything.
To refer a client for advice the process for accessing the service is as follows:
- Payment difficulties identified by adviser
- Obtain written consent from client to share information
- Send to Re10 either by email to enquiry@re10.org.uk or by fax to 0113 237 9550 or by post to York House, 4 Sheepscar Way, Leeds, LS7 3JB a completed:
- Re10 will contact client to discuss the position and advise on options and report back to you. If necessary, a meeting can be arranged with the client with the adviser present
- Client chooses preferred option
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Benefits to Advisors
Mortgage brokers and other professional advisors opting in to the service will benefit from the following:
- FREE access to professional guidance and expertise from Re10's leading insolvency practitioner network. Feel free to call Re10's help line on 0800 169 1536 for specific advice or to use as a sounding board.
- All initial consultations are with a qualified insolvency practitioner and completely FREE of charge.
- Fees are approved by creditors and met out of funds that would otherwise be paid to them.
- For advice and negotiation with a Trustee in Bankruptcy or Supervisor of an IVA to negotiate and agree the value of equity, fees are always agreed in advance and only become payable when a deal is done.
- Client retention.
- A fee will be paid to introducers in respect of the work they do in preparing the initial fact find information where an IVA is approved.
- Avoid the risk of future claims for not complying with MCOB 4.7.6 which states:
Where a firm makes a personal recommendation for a mortgage, the main purpose of which is to consolidate existing debts, the following matters must be considered:
- the cost associated with increasing the period of repayment
- whether it is appropriate to secure a previously unsecured loan
- if the customer is known to have payment difficulties, whether it would be more appropriate for the client to negotiate an arrangement with his creditors than to take out a mortgage
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Benefits to your clients
- Clients will have direct access to a national network of qualified debt advisers with an understanding of this complex market.
- Clients will be given impartial independent advice and information on a range of options and solutions that will enable them to make realistic choices for their future.
- Clients can benefit from a range of financial solutions that could enable them to:
a) Stop a bankruptcy petition and other legal proceedings.
b) Stop creditors from taking out a charging order against their property.
c) Freeze interest on debts.
d) Legally write off a substantial proportion of their unsecured debts.
- Clients not charged unrealistic, unnecessary fees.
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Why Re10?
Re10 is a national firm of insolvency practitioners and business turnaround advisors who also specialise in providing solutions to individuals with debt problems.
- Their specialist team of professional advisors are based in 11 offices and provide the highest level of advice and understanding.
- All financial options available will be considered.
- Offices located throughout the UK.
- Re10 enjoy considerable credibility with creditors and their representatives.
- They provide a free, independent help line on phone number 0800 169 1536
Re10 has developed a bespoke equity release debt settlement Individual Voluntary Arrangement. This involves releasing equity in a property to offer to unsecured creditors as a lump sum settlement of their claims in an IVA. This solution has been used more in recent years due to the following:
- Increase in house prices
- Knowing precisely how much will be realised from an IVA within a 6 month period is an attractive proposition for creditors who frequently sell debts to third parties.
- Creditors' collection procedures have become much more efficient and sophisticated, many of whom are keen to obtain an (unfair) advantage over other unsecured creditors by obtaining charging orders against properties and thus becoming a secured creditor. An IVA prevents this and thus protects the status quo.
We have found creditors generally much prefer to receive a lump sum certain within a three or four month period rather than monthly voluntary contributions over 5 years with an equity release at the end. This is a far better solution for clients who as a result:
- become free of their unsecured debts and out of the IVA within 6 months.
- know exactly how much will be realised from the equity in their property rather than having to wait 5 years with the uncertainty of how much the value of their property will increase by.
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When is it appropriate to access the service?
When unsecured debts have become out of control (usually in excess of £20,000) and creditors have started to apply pressure.
Where the main purpose of a mortgage is to consolidate existing debts and a customer is known to have payment difficulties mortgage brokers are required (by MCOB 4.7.6) to consider whether it would be more appropriate for the client to negotiate an arrangement with his creditors than to take out a mortgage.
Clients referred to Re10 will receive independent, impartial advice in respect of their options.
Signs that would indicate a client has payment difficulties would include, inter alia:
- County Court Judgments
- Mortgage arrears
- Creditors obtaining charging orders against the property
- Build up of credit card debt and unsecured personal loans (usually above £20,000) and/or previous debt consolidations
- Excess of expenditure over income
- Unable to pay debts as they fall due
If in doubt, call the help line on 0800 169 1536
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© Re10 (Finance) Limited 2005
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