Debt portal is launched

A new company, the Debt Advice Portal, has been launched which will offer debt solutions for brokers and their clients.

The company says the purpose of the service is to complete the advice circle by enabling brokers to assist clients who are unable to get a mortgage, by referring them seamlessly on through the Debt Advice Portal.

It says that up to 30% of mortgage applications that go through packagers fail because the client has such a poor credit history no lender will offer them a mortgage. In these cases the client can, through the portal, be transferred to a debt management company that will help them to improve their financial position, whether that be through negotiating payment settlements with their creditors or through an individual voluntary arrangement.

Brokers will receive a fee of either 150 or 125 if an IVA is taken out, and depending on whether the broker submits the case to Debt Advice Portal directly or through a packager.

Debt Advice Portal says brokers that wish to retain the relationship with their client will be able to do so, with the customer being referred back to the broker if and when appropriate, even if this is in two or three years’ time.

The service also offers a fully automated system available through packagers and online case tracking and status updates.