The implementation of the Mortgage Credit Directive (MCD) has led to increased competitiveness for consumers, bringing about quicker turnaround times and greater protections, according to master broker V Loans.

The new rules removing a number of customer protections, such as the 16 day cooling off period. V Loans argues these changes put second charge mortgages in a position to rival both bridging loans and remortgage where speed is the driving factor.

Marie Grundy, managing director of V Loans, said: “We are still in the very early days of the new MCD legislation, but the benefits for the second-charge mortgage sector are already plain to see. Across the industry we are seeing some second charge mortgages complete within a matter of days once a recommendation has been made to the borrower.

“Previously any material change in the second charge offer, such as a change to the loan amount or lower than expected property valuations meant that the borrower had to go through a further onerous cooling off period, this was detrimental to those borrowers who were looking to meet specific deadlines to release capital from their property.

“In addition because a solicitor is not required in the vast majority of second charge transactions, not only does this speed up the process considerably, in many instances it will be quicker than remortgaging and bridging, as well as mitigating substantial legal costs often associated with bridging finance.“