Majority of mortgage brokers to advise on second charges post-MCD

by:
  • 26/05/2016
  • 0
Majority of mortgage brokers to advise on second charges post-MCD
The majority of brokers surveyed by Legal and General said they will advise on second charge loans this year following regulatory changes brought in by the Mortgage Credit Directive (MCD).

Research carried out at Legal and General’s Spring Events revealed that 84% of brokers planned to include second charge loans in their advice process this year, with 32% saying they would write the mortgages themselves. Over half (52%) would refer the cases to a master broker.

Legal & General Mortgage Club recently announced it had formed a panel of second charge lenders for its members to provide them with a direct to lender submission route.

Director Jeremy Duncombe (pictured) said the results have been influenced by the post-MCD market, which means independent brokers will have to advise on whole of market, including second charge mortgages.

“At Legal & General Mortgage Club, we’ve recognised the growing importance of second charge lending with the recent launch of our direct-to-lender panel, widening the product choice for brokers and giving members direct access to lenders’ second charge products,” he said.

Duncombe said that brokers must future-proof themselves against further changes that could challenge their hold on the market.

“Intermediaries should look to offer a holistic advisory service, from mortgages and secured loans to equity release and insurance,” he said.

“At the same time, advisers should also look to their back-books for business opportunities, where they can advise exiting customers on their options for remortgaging and ensure the products they have still suit their current circumstances.”

London will see the largest rise in brokers writing second charges themselves at 41%, the research found.

There are 0 Comment(s)

You may also be interested in