Consumers don’t know what a second charge is

Four in five (79%) consumers don’t know what a second charge mortgage is according to a survey from specialist lender Together.

What is more 23% of those who do know don’t understand how a second charge differs from a remortgage.

Ever since the Mortgage Credit Directive implementation in March this year brokers have had to put forward a second charge as an alternative to remortgaging, which many expected to boost awareness and uptake.

But if this is anything to go by things have barely improved since Last Christmas.

Pete Ball, chief executive of personal finance at Together, said: “There needs to be greater public awareness of what a second charge mortgage means.

“We’ve seen continuing demand for this kind of loan, particularly when it comes to funding home improvements, and this could potentially increase further in light of Brexit.

“In the research we recently carried out we found that almost a fifth were less likely to move house as a result of the decision to leave the EU, although 35% were planning some home improvement in the coming year, and second charge mortgages are ideal of this purpose.”

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Written by: Houseladder