Second charge lending could outpace remortgages and bridging, says master broker

Marie Grundy (pictured), managing director of V Loans, said the benefits of the Mortgage Credit Directive (MCD) for  the second charge industry are already plain to see, including fewer legal costs than short-term finance such as bridging.

“Across the industry we are seeing some second-charge mortgages complete within a matter of days once a recommendation has been made to the borrower”, said Grundy.

The implementation of the MCD led to increased competitiveness for consumers following a gradual opening-up of the market, she added. 

“Previously, any material change in the second charge offer, such as a change to the loan amount or lower than expected property valuations, meant the borrower had to go through a further onerous cooling off period, this was detrimental to those borrowers who were looking to meet specific deadlines to release capital from their property,” Grundy added.

A solicitor is not required in the vast majority of second charge transactions, which speeds up the process considerably and in many instances it will be “quicker than remortgaging and bridging, as well as mitigating substantial legal costs often associated with bridging finance.“