The firm will approach the provider on behalf of the intermediary when the broker believes their application has been turned down unexpectedly.
Challenging decisions can take place for both decreasing mortgage term cover plans and level-term policies on interest-only mortgages. The company believes it has found a real niche in the market.
Paul Wadwell, marketing liaison officer for Second Chance Underwriting Services, said: “It’s commonplace in the United States to challenge a decision but intermediaries in the UK seem to just take it on the chin. Often, the case will get a loading but, because it has either been rejected or lies outside the affordability of the client, the case doesn’t proceed and the broker loses the business.With our help, they can help improve their conversion rate and do more business.”
The firm believes that more often than not, people with illnesses such as diabetes are penalised by providers because of their condition and it argued that common sense doesn’t apply to underwriting, especially when it is done electronically.
“Looking at this from a needs/benefit angle, everyone will be happier. The customer gets the cover they require at a price they can afford, the independent financial adviser obtains their commission and the provider benefits as, having spent a significant amount on underwriting expenses, the cover has been accepted rather than rejected by the customer,” Waddell added.
Jason Richardson, director of YooToo Financial Services, commented: “I would have to get a better idea of the costs but if I try and place a case and it’s a last resort then it could be useful. However, if I’m paying three-quarters of the commission then I might have to pass on the cost to the client and I wouldn’t want to do that.”
