Mortgage brokers are missing business opportunities – Maeve Ward

by: Maeve Ward, managing director, residential mortgages, Shawbrook Bank
  • 24/01/2017
  • 0
Mortgage brokers are missing business opportunities – Maeve Ward
It was hoped that following the introduction of the Mortgage Credit Directive customers would become more aware of second charge mortgages, but sadly this has not happened, writes Shawbrook Bank's Maeve Ward.

At the bank we thought it would be inevitable, especially as they are now in-line with firsts in terms of the protection offered, and the fact that advisers must disclose a second when raising capital. Unfortunately this awareness has not materialised, and as such the market has not grown as much as anticipated. My thoughts for the reason behind this are that advisers are ticking the disclosure box, but not following it through to the deal.

So why are advisers so reluctant to own the deal, especially when they could be losing out on business? Some fear that the process behind seconds is vastly different. The fact is that it’s completely aligned to that of a first. Customers experience the exact same journey; from the initial IDD [Initial Disclosure Document] to the seven-day reflection period. So the theory is that, if advisers know how to process a first charge mortgage – which they do every day, they should know how to process a second.

Many believe that the only route to a lender for a second is via a master broker. For many this is the case, especially where an adviser is an appointed representative of a network. However this is not necessarily a bad thing as it offers the customer a good journey. If your research has identified that a second is the best outcome for the customer, why would you not place a customer in the hands of a master broker who specialises in seconds, can offer advice in a market they are competent in, where they have existing relationships and know the criteria? As well as this, the adviser is remunerated for the introduction and they get to retain the customer’s business (including ancillary products) going forward. It’s a win-win for both the customer and the adviser.

This isn’t the only option, however. Some lenders have opened their doors and will accept direct business as the master broker route isn’t for all. The point to make here is that one size doesn’t fit all. However you wish to place second charge mortgage business – there should be a route for you.

There are 1 Comment(s)

You may also be interested in


Keep up-to-date with all the breaking bridging and short-term lending news and analysis, from regulatory changes to product innovation and inside market knowledge. Take a look at our broker and lender case studies showing short-term finance in practice.


Find all the news, opinion and analysis for property finance brokers specialising in commercial and semi-commercial mortgages, alternative and development finance for commercial investments in residential projects.

Second charge

Stay up-to-date with the latest news, analysis and opinion on the secured loan market as it evolves into a mainstream finance option following European regulation on 21 March 2016.

Complex buy-to-let

Whether it’s a complicated asset or a complex customer, you’ll find out all the breaking buy-to-let news in this section. From limited companies to portfolio landlords, student lets to a House in Multiple Occupation, we’ve got all bases covered with our up-to-the-minute news, analysis and opinion.

Mortgage Solutions

Find all the breaking news, analysis and industry comment on Specialist Lending Solutions' sister site, Mortgage Solutions

Read previous post:
Buy to let: Tenants need looking after too – Laker

The majority of recent media coverage around changes in the buy-to-let market has concentrated on the impact on landlords and...