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Brokers twice as likely to refer than write second charge

Brokers are more than twice as likely to refer than write secured loan business, research conducted by SimplyBiz Mortgages.

The research was carried out on 600 brokers and found that 60 per cent would refer secured loan business, while 25 per cent said they would write it themselves.

The remainder said they were not involved in the second charge market at all.

SimplyBiz Mortgages chief executive Martin Reynolds says: “The implementation of the Mortgage Credit Directive means that every broker needs to offer clients a facility for placing secured loan business in order to remain independent.

“The move from OFT to FCA regulation in 2016 meant that second charge products have seen a boost; improvements in cost and affordability testing have also helped to encourage more brokers into the market.  Whilst many are still opting to refer the processing of these cases to master brokers, there has been a marked increase in the number of brokers writing the business themselves, and I believe this will continue to grow.”

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