More education needed on second charge mortgages – Central Trust

The findings highlight how there is more education needed around when second charge can be an alternative to a remortgage, according to Central Trust.

Maeve Ward, director of commercial operations at Central Trust (pictured), said: “I’m confident that when brokers fully understand how and when a second charge mortgage might be the right outcome they will look to offer them either directly or via a master broker.”

Some 61 per cent of advisers also reported having problems placing self-employed and contractor cases due to Covid-19 issues, the survey by the intermediary-only lender found.

Brokers were polled during a virtual event which had more than 100 brokers in attendance.

Ward added: “Many self-employed borrowers will be looking to capital raise and a second charge may well be the best solution.

“However, most lenders operating in the market will fall short of the self-employed borrower’s requirements because they will assess the income from the most recent SA302 – which will relate to the period of the pandemic – and not take into consideration what went on before or how the business might now be operating at pre-pandemic levels.”