Mortgage Credit Directive by Ian Chambers at Hoskin Home Loans.

Mortgage Credit Directive is almost upon us and as with all change people are apprehensive but also excited especially in the second charge industry as predictions are that it will be able to gain some of the remortgage markets share of business.

Research has shown that equity released and withdrawn through remortgaging was up by 30% compared to the previous year.

However it is widely thought within the industry that with the implantation of MCD (Mortgage Credit Directive) that the second charge sector will challenge the remortgage market and we will see uplift in demand for secured loans.

Once regulation is in place more borrowers will view secured loans as a viable alternative to a remortgage.

Increased borrowing options for consumers will only be beneficial as they have more chance of finding the right loan to suit their needs.

The Regulator is keen to see the second charge market grown and MCD will help this provided brokers are properly educated. MCD will drive out those who should not be in the market and will drive business to those that do the job right.

The industry has seen lots of changes in recent times and lender, brokers, advisors and packagers alike will adapt because that is what they have always done.

Here at Hoskin Financial, the Secured loan packaging arm and the Mortgage department at Hoskin Mortgages have been working closely together over the last few months and look at each and every remortgage case to see if indeed a remortgage is the right product for a client whether it’s a residential property or a buy to let property.

Clare Allen from Hoskin Mortgages said “I was aware of the need to look at secured loans as an option but it has been invaluable to work closely alongside a secured loan packager and I feel happy and confident that I am looking at the best option for my clients and they are being armed with all the information to make an informed decision.

In closing we are ready for the changes largely thanks to the support of our lending partners and are looking forward to a successful year.

Ian Chambers @HoskinHomeLoans