Majority of brokers to advise on second charges this year
The majority (84%) of brokers plan to advise on second charges in 2016, Legal & General research has revealed.
A third (32%) of brokers said they will write seconds themselves while over half (52%) will refer cases to master brokers.
Under Mortgage Credit Directive regulation in order to call themselves independent advisers have to advise on second charges as well as first, athough they can still rely on a master broker for the information and retain their status.
Jeremy Duncombe, director of Legal & General Mortgage Club, said: “At Legal & General Mortgage Club, we’ve recognised the growing importance of second charge lending with the recent launch of our direct-to-lender panel, widening the product choice for brokers and giving members direct access to lenders’ second charge products.
“However, whilst it is of course good to see brokers taking advantage of these opportunities for new business, it’s also important that advisers look to futureproof themselves against any further changes that could challenge their hold on the market.
“Intermediaries should look to offer a holistic advisory service, from mortgages and secured loans to equity release and insurance. At the same time, advisers should also look to their back-books for business opportunities, where they can advise exiting customers on their options for remortgaging and ensure the products they have still suit their current circumstances.”