"We’re well aware that for various reasons there’s something of reticence amongst some brokers to fully engage with the second charge market."
The concern is not centered on those who have taken out a second charge. At least they have had the benefit of a fact find and advice. Instead, it’s those consumers who have been denied a second charge without due consideration who stand to suffer.
This is nothing new of course. We’re well aware that for various reasons there’s something of reticence amongst some brokers to fully engage with the second charge market. As a result, the vast majority of contemporary second charge loans tend to be generated by intermediaries in exceptional or uniquely ‘niche’ circumstances; cases which are either deemed too difficult to place or which are subject to severely limited options.
Indeed, as many within the industry will attest, the suitability of second charge products in relation to individual cases are often overlooked in favour of remortgaging options or potentially damaging advice to customers to ‘hang fire’ until their circumstances change. This means that in a variety of cases that might warrant or require alternative methods of finance, customers are often being denied the most obvious or favourable solution to their requirements.
But why is this, when one considers how competitive and accommodating second charges are, plus the ease with which brokers can access them? When brokers refuse to consider or offer second charge options they risk failing their customer bases and perpetuating a distortion. But from a commercial stand point, how can it make sense to deny yourself an opportunity to earn addition commission and at the same time drive your clients to a competitor who will offer a complete service and probably retain that customer in the future. In an industry predicated on consumer satisfaction, that must change.
Second charges will always play second fiddle to a remortgage but a professional service surely must consider and compare both and then explain why one, or neither of the products is suitable, effectively offering the solution your clients need today or stopping them from looking elsewhere tomorrow.
