Falling repos show how far the second charge sector has come

For me, the 50% decrease in repossessions over the same period last year is demonstration of just how well the second charge lending community have taken on the requirements of the regulator. Much is made of treating customers fairly and we tend to talk about it as a process that takes place at the beginning of the journey, when clients are looking for the right deal. Much more rarely do we think about the fact that the whole ethos of treating customers fairly should still be the guiding principle until redemption.

So, it is very heartening to see that second charge lenders (along with the rest of the sector) have quietly but diligently worked with the change of regulator to the FCA and integrated the changes, already required of the first charge market. With very little fuss, after the MCD came into force, the industry has adapted well and I think the regulator has very little to be concerned with at this point just over 15 months after MCD as far as the second charge sector is concerned.

At Fluent for Advisers, we are also seeing a more considered and welcoming attitude from brokers, both DA and AR. I think we are seeing a recognition that second charge loans do have a place in every adviser’s repertoire and there is more agreement now that there are solid reasons in certain cases, that a remortgage is not the answer to every request for capital raising.

The second charge sector is showing the world that it has worked hard to be taken seriously and any adviser would be wrong to ignore how far secured loans have come.