Professionals choosing second charge for debt consolidation

Equifinance says that in 2013 it was extremely rare to get a professional applicant taking a second charge for debt consolidation, however, they are now seeing a wider spread of the geodemographic profile to include more aspirational professionals in good employment. They’re also taking out larger loans, with the average Equifinance loan increasing over the last year.

The lender is also seeing a rise in customers who have had good jobs but were unfortunately made redundant and went self-employed. Equifinance says many of these are now back in full time employment and looking to re-establish their credit profile.

Tony Marshall, Managing Director of Equifinance, commented: “Although the number of CCJs registered against consumers in the second half of 2016 rose by nearly 20 percent, we haven’t seen a discernible Brexit effect. As second charges have been presented as a real option with significant benefits for many customers, we are seeing this reflected in a changing customer profile.

“And it’s not just MCD and continued debt recovery customers that has brought this on. Factors including our increasing distribution model and product innovation have also helped to promote our products. Homeowners have also seen the equity in their property increase in recent years and it’s certainly attracting a new profile of client who can use the loans to better managing debt.”