84% of brokers surveyed by Legal & General Mortgage Club plan to include second charge loans in their advice process this year, following recent regulatory changes brought about by the Mortgage Credit Directive (MCD).
These findings follow the club’s announcement of a direct to lender proposition for second charge loans launched earlier this month.
Legal & General interviewed attendees at their recent Spring Events, asking advisers about the future of the intermediary market. 32% of respondents said that they would write second charge mortgages themselves, while 52% would refer the cases to a master broker.
The research also found that London will soon see the largest rise in brokers writing second charges themselves, with 41% expecting to do so.
Jeremy Duncombe, director of Legal & General Mortgage Club, said: “These results have no doubt also been influenced by the post-MCD mortgage market, which means brokers still wanting to refer to themselves as independent now have to advise on whole of market, and that of course includes second charge mortgages as well.
“At Legal & General Mortgage Club, we’ve recognised the growing importance of second charge lending with the recent launch of our direct-to-lender panel, widening the product choice for brokers and giving members direct access to lenders’ second charge products.
“However, whilst it is of course good to see brokers taking advantage of these opportunities for new business, it’s also important that advisers look to futureproof themselves against any further changes that could challenge their hold on the market. Intermediaries should look to offer a holistic advisory service, from mortgages and secured loans to equity release and insurance.
“At the same time, advisers should also look to their back-books for business opportunities, where they can advise exiting customers on their options for remortgaging and ensure the products they have still suit their current circumstances.”