Following the news that 84% of brokers are planning to advise on seconds this year, Steve Walker (pictured), managing director of Promise Solutions, said that intermediaries now have more choice than ever in how they approach the market.
“With advice on regulated second charges becoming mandatory, brokers who previously thought the second charge market was murky should think again,” said Walker.
“Introducers should be able to rely on suitability, transparency and lower costs from their packagers as most have significantly reduced their fees.”
He said that now that lenders are offering direct facilities, brokers can choose a referral option if they are less experienced in the market, retaining the advice with the help of a packager, or deal direct with certain lenders.
“The current second charge product range is fantastic with super prime through to heavy adverse and lots of niches and manual underwriting brokers can take advantage of,” said Walker.
“There are customers out there for all of these products provided they are sold properly. Whatever fears and prejudices mortgage brokers may have held about secured loans, these should now disappear provided they partner with specialists which are embracing the future rather than clinging on to the past.”
“There really is little excuse for mortgage brokers not to get involved in second charges on some level. The help is available, they just need to ask.”
Promise Solutions launched a second charge mortgage club last month, offering access to underwriting, soft credit searches and sourcing tools.