Why you can’t ignore secured loans

Published on

2014-Bradley-moore

In the second charge division, we were delighted to have contributed to the £500 million of completions that Brightstar as a company has written since 2011. The importance of this sector of the specialist market continues to grow as rates remain low and we are seeing more brokers casting about for alternative sources of finance as remortgage requests are becoming harder to fulfil.

So we are seeing more converts to the second charge alternative as first charge lenders continue to struggle to balance pragmatism with the need to interpret the essence of the new affordability rules.

What I cannot stress enough is that second charge is not something that can be ignored in 2014. I am not saying that because I lead the second charge team at Brightstar, but because the regulator is on record stating that if a broker has a client who is looking to capital raise then it must be clear that a second charge quote has been researched as conscientiously as one for remortgage.

For those reluctant brokers who are still working on what they remember of the average second charge loan of pre-credit crunch days, I can assure you that you will not recognise the product of today.

We have proved time and again to sceptical brokers just how effective a second charge loan can be and where in fact a second charge loan is actually the better option. Brokers wishing to ignore the regulator run the risk of not only seeing their files picked apart by the regulator in the future, but also having a client who becomes aware of an alternative of which he or she was unaware and we know how the claims companies will gleefully jump on any perceived breach which they can exploit. So even if brokers are still not convinced, how much would it hurt to ensure they have at least included a second charge quote?

You never know you might be pleasantly surprised as well as safe from retrospective claims of negligence at a time in the future when memories of decisions made are not so reliable.

Bradley Moore is director of second charge lending at Brightstar Financial

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

Renters would buy if mortgage payments matched rent, MAB research finds

Nearly half of renters would buy a home immediately if their monthly mortgage payments...

HSBC cuts mortgage rates by up to 0.31bps

HSBC UK has reduced rates across parts of its mortgage range, with cuts of...

The Market Harborough cuts holiday let rates and ups max loan size to £3m

Market Harborough Building Society has reduced rates across its holiday let range by up...

The Buckinghamshire launches three-year fixed mortgage range

Buckinghamshire Building Society has launched a new range of three-year fixed mortgage products aimed...

West One creates national account manager role as mortgage division expands

West One has created two roles in its mortgage division and promoted eight existing...

Latest publication

Other news

Renters would buy if mortgage payments matched rent, MAB research finds

Nearly half of renters would buy a home immediately if their monthly mortgage payments...

HSBC cuts mortgage rates by up to 0.31bps

HSBC UK has reduced rates across parts of its mortgage range, with cuts of...

The Market Harborough cuts holiday let rates and ups max loan size to £3m

Market Harborough Building Society has reduced rates across its holiday let range by up...