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TSLE2018: Brightstar’s Jupp defends falling second charge fees
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.
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She added: “A simple true cost assessment would help brokers weigh up the best deal for the client.”