According to new research by Brightstar Financial, only 26% of brokers mention second charge mortgages to their clients during conversations, or at any time during the term of their product
Around 74% of brokers do not mention to their clients that they offer second charge mortgages, according to new research carried out by Brightstar Financial.
The distributor undertook a study of a diverse group of more than 1,000 intermediaries, including different types of broker firms, IFAs, Directly Authorised brokers and Appointed Representatives.
According to the results of the research, only 26% of brokers said they mentioned second charge mortgages to their clients during conversations to discuss their purchase or remortgage, or at any point during the term of their product.
The most common reasons given by advisers for not talking about second charge mortgages were that they did not have the time, or simply that they forgot to do so.
Michelle Westley, head of marketing at Brightstar Financial, said: It’s 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’s astounding that so many brokers are still not having conversations about second charge lending with their clients.
The good news is that this means three quarters of brokers now have a great opportunity to boost their business levels as we move into next year. It’s widely anticipated that the purchase market will slow down in 2021 with the removal of Help to Buy and the end of the Stamp Duty holiday, but the second charge mortgage market is set for growth as demand increases from customers who want to release capital from their home, Westley added.
Now is a great time for brokers who don’t have experience in second charge lending to partner with a specialist in this area so that they can hit the ground running, safe in the knowledge that they can access sector-specific expertise for their clients, Westley said.
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