The second charge mortgage market has undergone a huge change over the last 12 months following the regulation of the sector by the FCA. This has made second charge mortgages move centre stage, and acquire a greater veneer of respectability, but it comes with additional responsibilities.

Some of the original rules attached to them under regulation by the Consumer Credit Act have still carried over, but the FCA has added to the rules governing their sale.

The knock on effect has not yet been seen in the sales of second charge mortgages, but industry observers expect the market to take off incoming years.