Repo fall bolsters confidence among second charge advisers
The 40% drop in repossessions announced by the Finance & Leasing Association recently is "only part of the good news story surrounding second charge lending" according to Jeff Davidson, Head of Intermediaries at Fluent for Advisers.
"Second charge lending’s reputation is being enhanced every day as an important option for capital raising."
Since MCD came into force, Fluent has seen new business levels grow with a corresponding spike in enquiries and requests for referral from advisers who have not recommended second charge loans before.
Jeff Davidson said: “The reduction in repossessions by 40%, recently announced by the FLA on behalf of its members, is a really positive statistic which strengthens the case for the legitimacy of second charge loans and will certainly bolster confidence among advisers.
"Second charge lending’s reputation is being enhanced every day as an important option for capital raising. This announcement is further evidence that where customers do get into difficulties, lenders are clearly doing everything they can to ensure that ways are found to help them cope and only in the direst circumstances is a repossession called for.
"The growing maturity of the sector and its wholesale embracing of the new regulatory framework can only make more advisers and their customers aware what an attractive proposition second charge loans can be.”
Breaking news
Direct to your inbox:
More
stories
you'll love:
This week's biggest stories:
This week's biggest stories:
Santander
Santander launches 98% LTV ‘My First Mortgage’
First-time Buyer
Improved affordability sparks 20% rise in first-time buyers: NationwideÂ
Inflation
Further rate cuts dampened as inflation rebounds to 3.4%
Mortgage Rates
Two Big Six lenders increase mortgage rates as swaps rise
Bank Of England
Bank of England holds interest rates at 3.75% in narrow 5-4 vote
Interest Rates
Looser Fed policy stance could slow further rate cuts, policymakers warn