Repo fall bolsters confidence among second charge advisers

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.”