Mortgage brokers urged to act now on second charge advice – Steve Walker

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  • 19/07/2016
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Mortgage brokers urged to act now on second charge advice – Steve Walker
Four months post-Mortgage Credit Directive and it seems very little has changed in the mortgage market, despite predictions that second charge lending volumes would rise, writes Steve Walker, managing director, Promise Solutions.

Figures show secured lending has not seen anything like the sort of boost one would expect if mortgage brokers had embraced second charges. So what’s happening?

I can understand that brokers may feel a little trepidation about entering the market but such an excuse can only be accepted for so long. Indeed, I expect the regulator is past the point of accepting it.

Masterbrokers and second charge lenders have worked hard to ensure brokers are informed, educated and ready to get on board with seconds. But there comes a point when the time for educating and preparing stops and the time to take action starts and for mortgage brokers that time is now.

If you’re not fully aware of what is needed of you yet or you don’t understand the implications to your independent status if you choose to ignore – or even refer – seconds then you need to address this quickly. You’re now late. The deadline has gone and you may find yourself facing the wrath of the regulator.

Those of you who are equipped with the information you need, what are you waiting for? There has never been a better time to embrace seconds. Rates are at record lows, fees are falling and product development is more innovative than ever. You could be using seconds to help adverse clients you might previously have turned away or to help a buyer complete on a sale when a first charge falls short, by using a first and second which complete simultaneously. The uses and benefits of second charge lending are countless.

But we’re now past the point of trying to entice brokers with talk of how beneficial seconds can be. It’s not a question of whether you like the look of them any more, or whether you fancy giving them a go.

Unless you’ve opted out from offering them, the regulator requires you to include seconds in your sales process going forward. If you’re not doing so by now it’s going to want to know why.

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