74% of brokers do not mention second charge

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Three quarters of brokers (74%) confirmed that they do not tell clients that they offer second charge mortgages, according to data collected by Brightstar Financial.

The research found that only 26% of brokers mentioned second charge mortgages to their clients during discussions on purchase or remortgages options.

The most common reasons advisers provided for not doing so were that they did not have the time, or that they forgot to do so.

The data was collected from over 1,000 intermediaries, including different types of broker firms, independent financial advisers (IFAs), directly authorised brokers and appointed representatives.

Michelle Westley, head of marketing at Brightstar Financial, said: “It is now more than four years since second charge mortgage lending came under the same umbrella of regulation as the first charge market and brokers have been required to consider second charges alongside other options for capital raising.

“So, it is astounding that so many brokers are still not having conversations about second charge lending with their clients.

Danny Waters, chief executive at Enra Group, added: “At a time when borrowing needs are becoming increasingly complex, it is disappointing to see that a significant proportion of advisers are disregarding second mortgages as part of their advice process.”

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Written by: Houseladder



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