The drop in repossessions by 40% announced by the Finance & Leasing Association (FLA) is only part of the good news story surrounding second charge lending according to Jeff Davidson, head of intermediaries at Fluent for Advisers.
Since the MCD came into force, new business levels have grown with a corresponding spike in enquiries and requests for referral from advisers who have not recommended second charge loans before.
He said: “The reduction in repossessions by 40%, recently announced by the FLA on behalf of its members, is a really positive statistic which strengthens the case for the legitimacy of second charge loans and will certainly bolster confidence among advisers.
“Second charge lending’s reputation is being enhanced every day as an important option for capital raising. This announcement is further evidence that where customers do get into difficulties, lenders are clearly doing everything they can to ensure that ways are found to help them cope and only in the direst circumstances is a repossession called for.
“The growing maturity of the sector and its wholesale embracing of the new regulatory framework can only make more advisers and their customers aware what an attractive proposition second charge loans can be.”