Second Charge Lending
Close alignment to first charges makes seconds easier to understand – Specialist Mortgage Group
Increasing similarities between first charge and second charge loans makes it much easier for mortgage brokers to use the products, according to Specialist Mortgage Group CEO Matt Cottle.
Speaking on Specialist Lending Solutions Television in association with Shawbrook, Cottle said second charges had gone through a significant overhaul during the last decade.
“Second charge loans and first charge loans are so similar these days,” he said.
“It used to be very much a first charge marketplace and a small section of the market which we called secured loans, which was a kind of bolt-on product.”
He highlighted the similarities noting “the aligning of rates and type of products like discounted products, part-capital repayment, part interest-only”.
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“And because first charge mortgages are called first charge mortgages and now secured loans are called second charge mortgages, its more understandable for the mortgage intermediary to see where the products can align and where they fit,” Cottle added.
[For intermediaries only]
Panel:
Caroline Mirakian, head of intermediary distribution at Shawbrook Bank
Matt Cottle, CEO of Specialist Mortgage Group