Brokers predict further 10% growth in second charge market

Brokers expect the value of the second charge loans market to increase by around 10% in the next two years, according to research from V Loans.

Related topics:  Specialist Lending
Rozi Jones
15th September 2016
savings money pension retirement grow
"The second charge lending sector has been subject to unprecedented regulatory change in last six months. We believe the sector post MCD is moving in the right direction."

Since the implementation of MCD in March, almost three in five (59%) brokers say they have seen a rise in applications for second charge loans with over one in ten (12%) saying they have seen a substantial increase.

Around half (49%) of brokers say that second charge loans have now become more important to their business due to the new regulations.

Two in five (40%) brokers who have seen an increase in second charge loan applications believe that greater customer protection through increased regulation is the key driver of this growth.

This is followed by the access to larger loan sizes (39%), those who have been declined for a mortgage (37%), affordability criteria (35%) and second charges offering more flexibility for borrowers with more complex circumstances (34%).

Marie Grundy, managing director of V Loans, said: “The second charge lending sector has been subject to unprecedented regulatory change in last six months. We believe the sector post MCD is moving in the right direction.

“However, whilst the rules for first and second charges have been aligned, the processes are fundamentally different. The value of the support that can be provided by Master Broker firms, both in terms of providing extensive research of the market and access to experienced processors to ensure applications reach completion stage cannot be underestimated.”

More like this
Latest from Property Reporter
Latest from Protection Reporter
CLOSE
Subscribe
to our newsletter

Join a community of over 30,000 intermediaries and keep up-to-date with industry news and upcoming events via our newsletter.