CCR Magazine

You are here  :Home arrow News arrow Seconds are 'a mile away from where they need to be'
Contact Us Newsletter Signup RSS Feeds

Latest News Headlines

Headlines

 
Commercial Credit News

Headlines

 
Seconds are 'a mile away from where they need to be' PDF Print E-mail
Tuesday, 21 March 2017
The second-charge market has plenty of scope to develop but needs to keep pushing the education message if it wants to grow, said Alistair Ewing of The Lending Channel, speaking at today’s Financial Services Expo (FSE) Glasgow, the premier exhibition for the financial services industry in Scotland.  

“Seconds are a mile away from there they need to be,” said Ewing. “It’s a niche market of course, but it needs to be a bigger niche market. The influx of business we might have expected post-MCD has not happened and we need to do a better job in terms of educating the consumer. For some it’s still seen as a loan of ‘last resort’ and that’s not the case.”

He added: “The market’s not gone far enough yet. We have loads of brokers on our panel who still won’t consider seconds, despite our efforts to educate them. It needs to grow.”

Robert Sinclair, Chief Executive of AMI, agreed that seconds could fill a vital function: “I see a second-charge mortgage as a good way to do debt consolidation; taking the second over a shorter term, and that’s likely to keep the regulator happy as well.”

John Coffield of Paradigm Mortgage Services said that the sector probably needed time to find its feet in the new environment. “I still think there is a hangover with seconds in that they are viewed as expensive products, which I don’t believe they are,” he said. “It does take a while for these things to bed in; just because the regulator says it should look a certain way, doesn’t mean it won’t take time.”

When asked about the FCA’s mortgage market competition study, Coffield said that there were competition issues that could be addressed. “I think there are competition issues surrounding new lenders coming to market and the challenges they face,” he said. “I think there are issues in the directly authorised (DA) market who can’t compete with the larger networks, because of the restrictions placed on new lenders.”
 
Enghouse Side Banner

 Forums International Ltd

Forums International Ltd

 Attendance at your first meeting is free of charge, and please quote reference 'CCR2016' to receive the special 10% discount off of your first annual subscription.

Find out more here.

latest issue

CCR Cover

The latest edition of CCR Magazine, the leading editorial publication in the UK credit industry, is out.

Read the latest issue online

subscriptions

CCR is the premier magazine for consumer and credit professionals. It provides an independent voice to the industry, breaking major news stories and running in-depth features.

As a magazine, it works with and campaigns on behalf of the credit industry to promote its importance as a centre of potential profit and business development to the wider business world.

Subscribe to CCR Magazine

CCR World Magazine


 

Providing information and analysis for thousands of senior credit professionals worldwide, every quarter.

Find out more

GTS Media Ltd
81 Cambridge Road
Southend-on-Sea
Essex
SS1 1EP

Registered in England No: 05483197