An MCD boost for second charges

According to our most recent broker survey, 51% of brokers thought that the MCD will result in more second charge mortgage business being written.

A positive response

Based on our feedback and own experiences, the second charge mortgage market has responded very positively to the change, and is continuing to grow. Now that it’s becoming better known that remortgaging isn’t the only game in town, we’re seeing lots of cases which, prior to MCD, may well have gone straight down the remortgage route without the borrowers giving much thought to a second charge mortgage as an alternative. Of course, there’s a place for both seconds and remortgages in the adviser’s tool bag but we believe the MCD has certainly elevated the profile of second charge mortgages and this will hopefully lead to less people reluctantly switching their entire mortgage just to replace their kitchen or fund an extension, for example!

Speed is of the essence with home improvement loan

We recently received an application for a £100,000 home improvement loan from a Master Broker where the loan was to complete an extension and finish a full redecoration of the property. The application was underwritten on the day it was received, with proof of income and the assessment of affordability completed, a valuation and ID the main items which remained outstanding. The valuation was completed two days later, by which time ID had also been provided allowing a Binding Offer to be issued. The Mortgage Deed was then returned to us by the customer, meaning that from receipt of the application to the loan completion only 6 working days had passed. Compare that to the time it takes to complete your average remortgage and it’s no wonder the second charge market is growing so quickly!