Friday, June 24th, 2016
Following changes to regulations impacting second charge mortgages (previously referred to as “secured loans”), it has now become increasingly important for anybody thinking of taking one out to seek independent and expert mortgage advice from a mortgage advisor like Birmingham’s Caboodle Finance.
Since 21st March 2016 (following the implementation of the European Mortgage Credit Directive or “EMCD”), the majority of these second charge mortgages now have to be handled in very much the same way as a standard first mortgage on a person’s home or investment property.
These changes have not only challenged new applicants, but also the lenders and brokers too. In order to ensure that the mortgage advice given on these second charge mortgages mirrors that which would be given in connection with a first mortgage on a home or buy to let property, many of the companies involved have had to quickly implement system upgrades and of course retrain their staff.
That said, three months on and with these changes well “bedded in”, ongoing product development by the lenders represents good news for consumers who will ultimately get more choice. The fact that most customers will now receive mortgage advice when taking out a second charge is a key factor given that for many, a second charge mortgage may well be a better solution than a remortgage for those looking to raise capital secured against their property.
There are numerous reasons why a second charge may be a more suitable solution than a remortgage and getting advice on this could prove invaluable, but as many brokers are still specialising in either mortgages or second charge mortgages, they are unable to make the necessary comparisons between the two and consequently may not be in a position to provide appropriate mortgage advice in all the circumstances.
Whilst in the future, some mortgage brokers may go on to form alliances with a second charge broker, (and vice-versa), these relationships will still need to be closely monitored by the industry regulator to ensure that consumer outcomes remain the highest priority.
What if you need some great mortgage advice right now? Well, that is where Caboodle Finance of Sutton Coldfield, Birmingham could really make the difference. Call us on 0121 308 9114 or just click HERE to contact us by email to get started today.
Caboodle Financial Services Ltd
240B Lichfield Road
Sutton Coldfield B74 2UD
Telephone: 0121 308 9114