Poll
Shaking off second charge loan misconceptions
The broker told me they would never normally consider a second charge loan and wanted to know whether they should recommend one as the customer didn’t have adverse credit.
My heart sank a little when I realised that we’ve still got work to do to convince brokers and their customers that second charge loans are a valid alternative to remortgaging. We also need to dispel some of the misconceptions that still exist in the marketplace.
There are a couple of misunderstandings that particularly concern me. We all need to work together to shake them off once and for all.
The first misconception is the belief that second charge loans are only for customers with adverse credit. While it’s true that they’re used by customers with less than perfect credit profiles, the vast majority of them are taken on by people who are prime borrowers who need to raise funds quickly, want to protect an existing first charge rate or want to avoid the early repayment charges that a remortgage could incur.
The second one is that customers will proactively ask for a second charge loan. Although they are recognised within the industry as an alternative finance solution, they’re not so well known by the general public. Brokers can play a vital role in bringing them to the attention of customers who are looking to capital raise. Customers will rarely ask for a second charge loan outright; they will probably describe a scenario. This is where a knowledgeable broker really comes into their own: identifying opportunities when a second charge loan could be the solution.
Although the perception of second charge loans has changed in recent years, we all need to pull together to ensure the market continues to evolve and grow. It’s in everyone’s interests to raise awareness of the product. Brokers will have an increased range of products at their disposal to secure repeat business and referrals, and customers will be able to access a flexible product which could offer a solution for a wide range of situations.
Post your comment:
Related Articles:
I well omega replica watches removed them, in I below. Those companions call fake rolex watches sounded like a bird chirp. Squeezed between the fragmentation omega replica of the basalt is cold crunching sound rolex replica watches of quicksand. Flat slopes gradually, I came to the edge of breitling replica watches the crater, a cement embankment covered with dark brown on top. I ran over to cartier replica watches see the cement, the steel roof covering the top: This is the beginning of replica watches the 22 century dome structure. It would appear that we have longines replica watches come to the right place. From my u boat replica watches current position.