Second charge market to grow by 10% in two years
Brokers expect the value of the second chage market to increase by 10% in the next two years, V Loans Research shows.
Since the implementation of the Mortgage Credit Directive in March three in five (59%) brokers have experienced a rise in applications for seconds.
Around half (49%) say second charge loans have become more important to their business due to the new regulations, as three in five (59%) are more likely to consider a second charge for customers looking to raise capital.
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.”
V Loans was acquired by Key Retirement Group in October 2014.