5) If it ain’t brokered…
Mortgage brokers have been rapped on the knuckles by two second-charge lenders which have questioned whether they are meeting their obligations.
Together and Enterprise Finance have expressed concern about a lack of awareness of the product among brokers.
Under the Mortgage Credit Directive rules, which came into effect in March 2016, brokers need to decide whether they want to advise on second charge mortgages.
If they don’t, they will need to bring this to their clients’ attention so they are aware it is an available option, even if not one offered by that broker.
But Gary Bailey, sales director at Together, said his company’s research found 79 per cent of people in the UK were completely unaware of second charge mortgages.
