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.”