When a remortgage or an unsecured loan simply doesn't meet your client's needs - could a Second Charge mortgage be appropriate?
You already know under MCOB rules, even if you don’t have Second Charge permissions, you must as an absolute minimum – tell clients that the option exists and that it may be better for them.
So, when can you spot scenarios for Second Charge mortgages and for which clients?
Common situations:
- Debt consolidation
- Home improvements
- Second property deposits
- Business injection
Typical clients:
- Both prime and subprime
- Self-employed
- 'Stuck' in their first charge
- Need to avoid paying an ERC, or forfeiting low-interest rates on an existing mortgage
Think they’re difficult to place? Here’s our advice on overcoming the 6 major challenges with placing Second Charge mortgages.
With rates from 3.65%, LTV up to 95% and lending criteria up to £2m – Second Charges can be used for various reasons and clients.
