Brokers disillusioned with remortgages post-MMR

Published on

Smart-Money

Second charge distributor Smart Money has reported a growing number of mortgage brokers who are enquiring about second charge loans because of the changes to affordability instigated by some first charge lenders.

According to director, Paul Crewe, increasing first contact with brokers calling the Chester and Glasgow offices and greater interest from brokers who had previously ignored second charge being called on by Smart Money’s business development managers, are contributing to strong evidence that intermediaries generally are having to make different arrangements for clients seeking to raise capital.

He said: “Having heard some of the more bizarre information requests by first charge lenders seeking to interpret the new rules on affordability, I am not surprised that brokers are having to look outside the remortgage box.

“We are definitely seeing an upturn in enquiries from brokers who have either not used second charge or have only had a passing interest because of the problems faced in sourcing remortgages.

“Second charge is not a soft option, but the structure of the loan and its relative short term, along with a settled and responsible affordability model means that brokers are finding second charge borrowing a more realistic avenue for clients seeking to raise capital.”

Latest POLL

COMMENT ON MORTGAGE SOUP

We want to hear from you!
Leave a comment and get the conversation started.
You need to register to post, so please login or sign up below.

Latest articles

UTB appoints BDM for the north and Scotland

Fran Arnold has joined the sales team at United Trust Bank Mortgages as business...

International demand for UK property investment ‘more diverse than expected’

The UK property market is attracting investment from a much broader range of international...

Accord Mortgages makes widespread buy-to-let cuts

Accord Mortgages is reducing rates across to its buy-to-let product range by up to...

The Cumberland partners with FareShare to combat Glasgow food poverty

The Cumberland Building Society’s commercial team has partnered with FareShare Glasgow and the West...

Other news

UTB appoints BDM for the north and Scotland

Fran Arnold has joined the sales team at United Trust Bank Mortgages as business...

International demand for UK property investment ‘more diverse than expected’

The UK property market is attracting investment from a much broader range of international...

Accord Mortgages makes widespread buy-to-let cuts

Accord Mortgages is reducing rates across to its buy-to-let product range by up to...