Brokers twice as likely to refer than write second charge loans

However the number of brokers who do not operate in the second charge market at all has dropped significantly since 2016.

60% of the 600 brokers surveyed indicated that they would refer secured loan business, whilst 25% responded that they would write the business themselves. Only 15% of respondents said they were not involved in the second charge market at all.

Martin Reynolds, CEO of SimplyBiz Mortgages, commented: “The implementation of the Mortgage Credit Directive means that every broker needs to offer clients a facility for placing secured loan business in order to remain independent. The move from OFT to FCA regulation in 2016 meant that second charge products have seen a boost; improvements in cost and affordability testing have also helped to encourage more brokers into the market. Whilst many are still opting to refer the processing of these cases to master brokers, there has been a marked increase in the number of brokers writing the business themselves, and I believe this will continue to grow.

“Undertaking this research has improved our understanding of the development of the secured loan market, and broker engagement. In turn, this means that we have been able to evolve our proposition for Members of SimplyBiz Mortgages, and our direct to lender panel is now wider and more comprehensive than ever before.”