Do we believe 85% of brokers really consider second charges? – Walker

by: Steve Walker, managing director, Promise Specialist Lending
  • 19/07/2018
  • 0
Do we believe 85% of brokers really consider second charges? – Walker
According to research by SimplyBiz Mortgages, only 15% of mortgage brokers are not involved in the second charge market at all.

 

‘Success’ I hear the second charge industry cry.

We’ve done it, all that education and information over the last few years to encourage brokers to treat seconds in exactly the same way as they do firsts has paid off. Job done.

Or is it? You see, the merit of such a statistic lies wholly with how one interprets the term involved.

Are we to believe that 85% of mortgage brokers are consistently considering a second charge alongside a remortgage?

That seconds are as important piece of their tool box as their first charge counterpart?

Or, by “involved in” are we perhaps including those who occasionally look at seconds only if a first charge can’t be used?

Maybe a few cases per year at best, if they happen to remember.

 

How do we measure success

If it’s the latter, and my experience suggests it is, while the results are a step in the right direction I don’t think we can point to this as a massive success just yet.

Indeed, if success is measured by brokers consistently comparing second charges and remortgages, and offering whichever is most appropriate, I wouldn’t be surprised if closer to 85% of the time this doesn’t happen.

The fact is ticking a box to say you offer seconds is easy.

Offering them consistently is another matter, although it is easier than many brokers think with simple referral or packaging options offered by most decent master brokers.

 

On brokers’ radar

It’s certainly a good thing that seconds are being talked about more and appear to be on most brokers’ radars at least.

But we should take these sorts of statistics with a pinch of salt.

It’s clear from the amount of business being done in the seconds arena at present, despite the growth we’ve seen, that most brokers are still not as engaged as they could be.

 

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