Speaking at Precise's MCD and Second Charge Lending conference today, Cleary said that the changing fee charging structure within the industry has been "directly driven" by MCD, leading to better financial outcomes for consumers, adding that MCD will continue to improve standards.
Discussing opportunities for brokers, Cleary added that this is leading to better competition and products, and a more similar process to first charge, which is encouraging brokers to recommend seconds.
Cleary believes that "over time, the conversion rate will improve in this business".
Discussing the impact on the industry post-Referendum, Cleary said "I think it will slow down", but believes that the market will see a 'slightly flat' period rather than a 'massive drop'.
However he admitted that a potential drop in house prices has raised concerns within the industry. Last week, Precise dropped its maximum LTV for second charge lending from 85% to 80% LTV.
Yet discussing how much brokers will use seconds in the future, Precise says "there is more demand than you think".
One positive of a cautious market, he said, is homeowners using second charges for home improvements instead of moving house.
Cleary says that steps the industry has taken, including Precise equalising procuration fees on first and second charge loans, will also encourage brokers to become more involved in the industry
