Buster Tolfree, commercial director – mortgages at United Trust Bank, takes us along the path of changes in the second charge mortgage market following MCD regulation in March 2016
Second charge mortgages
March saw a slowdown in second charge mortgage new business, falling 10% by value and 13% by volume compared with the same month in 2017.
The second charge mortgage market saw a 14% increase in the value of new business in 2017 taking the market to £1.24 billion.
Criteria search system Knowledge Bank has created a partnership with master broker Loans Warehouse, which specialises in second charge and bridging loans.
Second charge mortgage repossessions continue to tumble and in 2017 there were 105 homes taken into possession, 27% lower than in 2016.
Vida Homeloans is conducting a pilot in the second charge mortgage market, offering a range of residential and buy-to-let products through two selected master brokers – CSC Loans and Loans Warehouse.
The last three months of 2017 saw record lending in the equity release market reaching over £838 million taking annual sales to £3.06 billion - the first time it has exceeded £3 billion in a single year.
Second charge master broker Clever Lending has joined IRESS’ XPLAN Mortgage sourcing platform, enabling brokers to compare second charges with remortgage products.
New second charge mortgage lending in September 2017 stood at £77 million, the same as the previous September, while the number of new agreements was 1,693, a fall of 2% year-on-year.
Working alongside second charge master broker Smart Money, specialist lender Together has delivered funding in 24 hours to enable a landlord to complete renovations on his buy-to-let property.