Advisers with clients looking to remortgage or invest in buy-to-let properties stand to benefit from better regulation in the second-charge market.
According to Marie Grundy, managing director of VLoans – an associated representative of Key Retirement Solutions, the FCA’s increasing remit over second-charge markets has served to help advisers and their clients.
She said: “The pending alignment of regulation for first and second-charge markets will deliver huge opportunities and innovation to the market, allowing advisers to provide better customer outcomes. Intermediaries should seriously consider including second charges within their scope of service ahead of the regulatory changes next year.”
Furthermore, she claimed that the second-charge market, which was on course to lend up to £750m this year, could benefit 10 per cent of all remortgage or further-advance clients, including those interest-only customers who did not want to incur substantial early repayment charges by remortgaging.
Marie Grundy’s statement came as the FCA revealed it had already approved three second-charge mortgage brokers, with a further eight firms in the pipeline of authorisation.
Danny Waters, chief executive for Hertfordshire-based Enterprise Finance, said: “Full regulation of the mortgage market has helped improve standards in the home-loan industry, and we are confident that the second-charge mortgage sector will reap similar rewards.”