Second charge fees have come down 30 to 40% since the implementation of the Mortgage Credit Directive (MCD), said Rob Jupp, responding to a question from the floor at The 2018 Specialist Lending Event.
The rules implemented on 21 March 2016 created a level regulatory playing field for mortgages and second charges as the loans were removed from the credit regime and put into the mortgage structure.
A delegate at Aintree asked the lending panel, chaired by Jupp, why second charge fees are ‘so high?’
Jupp said: “Fees have come down, in fact.”
He added Brightstar had done a lot of work with its network partners and has found in the last one and a half years the finance costs had reduced by 30 to 40% since the European regulation hit.
Lucy Barratt (nee Hodge) director of Vantage Finance, said nearly all mortgage brokers will have reduced their fees in the last 12 months.
She added: “A simple true cost assessment would help brokers weigh up the best deal for the client.”
Victoria Hartley is contributing editor at Mortgage Solutions, Specialist Lending Solutions, Your Money and Your Mortgage at London-based publishing company AE3 Media.
She has an MA in Radio from Goldsmiths after gaining a 2:1 in a Comparative American Studies BA at Warwick University. She also holds a TEFL qualification and taught overseas in Mexico and Japan from 1994 to 1997.
Her role includes editorial oversight of the news, analysis and features, event content management and strategic and editorial consultancy for the AE3 Media group. She is an experienced video, broadcast and live-event host and regularly chairs web and podcast debates and interviews.
Multiple award nominations have resulted in two wins: Santander Media Awards, trade journalist of the year and Headlinemoney Awards, mortgage journalist of the year (B2B). Here is one of the award-winning pieces: https://www.mortgagesolutions.co.uk/news/2011/07/21/exclusive-tale-bailey-fraud-witness/
Previous roles include editorships of Mortgage Solutions, consumer title What Mortgage and trade title Credit Today as well as a stint freelancing for a variety of outlets including The Guardian and Which? Money.
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