Secured loan broker V Loans has launched a Mortgage Credit Directive-ready second charge advisory service.

The firm claims that its service will enable networks, firms and mortgage advisers to ensure clients have full access to second charge lending when a re-mortgage to a first charge is either unsuitable or unavailable.

It is designed to help advisers who do not wish to take on responsibility for advising on second charge mortgages following implementation of the Mortgage Credit Directive in March.

However, for those advisers that wish to remain in scope of the rules, the V Loans service enables them to refer borrowers to V Loans.

V Loans estimates that for approximately one in 10 remortgage customers a second charge will be a more suitable option with the result that many organisations and their advisers will not offer advice directly for both firsts and seconds when a second may only be appropriate for a selection of clients.

Marie Grundy, managing director of V Loans, said: “With MCD disclosure requirements looming, consumers are now more engaged than ever before with the concept of second charge mortgages. As a result advisers who opt not to have seconds within scope at all are missing a huge opportunity for placing business which otherwise is either unsuitable for first charge or where a first remortgage is unavailable.

“At V Loans, we have created a full handover process which networks, firms and advisers are already using successfully in the lead up to MCD, proving the important role second charge mortgages play in the market. Our workshops with partners are also designed to help identify second opportunities especially to support cases of unsuitability for firsts where penalties and overall cost of borrowing are punishing and can be overcome with a second charge.”