Three-quarters of brokers don’t discuss second charge mortgages

Three-quarters of brokers do not tell their clients that they offer second charge mortgages, according to new research from Brightstar Financial.

According to the findings, only 26% of brokers revealed they had mentioned second charge mortgages to their clients during conversations to discuss their purchase or remortgage, or at any point during the term of their product.

The specialist distributor undertook a study among a group of 1,076 intermediaries, including different types of broker firms, IFAs, directly authorised brokers and appointed representatives.

Brightstar found the most common reasons given by advisers for not talking about second charge mortgages were that they did not have the time, or simply that they had forgotten.

“It’s now more than four years since second charge mortgage lending came under the same umbrella of regulation as the first charge market and brokers have been required to consider second charges alongside other options for capital raising,” commented Brightstar head of marketing, Michelle Westley.

“It’s astounding that so many brokers are still not having conversations about second charge lending with their clients.
 
“The good news is that this means three-quarters of brokers now have a great opportunity to boost their business levels as we move into next year. It’s widely anticipated that the purchase market will slow down in 2021 with the removal of Help to Buy and the end of the stamp duty holiday, but the second charge mortgage market is set for growth as demand increases from customers who want to release capital from their home.”
 
Enra Group CEO, Danny Waters, added: “It is understandable that the challenges presented by current service levels within the first charge market means mortgage intermediaries are likely to be experiencing increased pressure around operational capacity and resource.

“However, the option to outsource second charge advice and processing with specialist broker firms such as Brightstar, mean that second charges can and should still be considered alongside remortgage options to determine the best possible consumer outcome.”

    Share Story:

Recent Stories


FREE E-NEWS SIGN UP

Subscribe to our newsletter to receive breaking news and other industry announcements by email.

  Please tick here to confirm you are happy to receive third party promotions from carefully selected partners.


The new episode of The Mortgage Insider podcast, out now
Regional housing markets now matter more than ever. While London and the Southeast still tend to dominate the headlines from a house price and affordability perspective, much of the growth in rental yields and buyer demand is coming from other parts of the UK.

In this episode of the Barclays Mortgage Insider Podcast, host Phil Spencer is joined by Lucian Cook, Head of Research at Savills, and Ross Jones, founder of Home Financial and Evolve Commercial Finance.

The role of the bridging market and technology usage in the industry
Content editor, Dan McGrath, sat down with chief operating officer at Black & White Bridging, Damien Druce, and head of development finance at Empire Global Finance, Pete Williams, to explore the role of the bridging sector, the role of AI across the industry and how the property market has fared in the Labour Government’s first year in office.


Helping the credit challenged get mortgage ready
A rising number of borrowers are finding it harder to access mortgages due to being credit challenged - whether that’s from historic debts, a county court judgment, or having little to no credit history.

In the latest episode of the Mortgage Insider podcast, Phil Spencer is joined by Eloise Hall, Head of National Accounts at Kensington Mortgages, and Alastair Douglas, CEO of TotallyMoney.

The future of the bridging industry and the Autumn Budget
MoneyAge content editor, Dan McGrath, is joined by head of marketing at Black & White Bridging, Matt Horton, to discuss the bridging industry, the impact of the Autumn Budget and what the future holds for the sector.