Solving the generational divide

At present the mortgage market stands at something of a generational divide and it’s one that could have considerable implications for the second charge market.

Those brokers who have been around for some time have the experience and knowledge that new starters can only aspire to have. However, old habits die hard and when you’ve operated in the same marketplace for years you’re bound to have developed your own way of doing things so to be expected to suddenly change can be a challenge. Looking at secured loans differently is an example of this.

Then we have the new blood coming into the market who are open to learning and are easier to influence. One would think, therefore, that offering seconds to clients in the same way they would offer a first would present no problem.

However, there remains one big problem here and that is the CeMAP.

Other than a cursory nod to explain that a second may exist, the current mortgage adviser qualification contains very little information or instruction on properly comparing second charges with their first charge cousins.

Key Criteria & Application Guidance

There is no real detail about the scope of second charges, the type of clients they would benefit and their uses.

And this presents an issue, especially when the colleague a new adviser might turn to for advice is from a generation with its own prejudices and has not embraced second charges themselves.

Many brokers are starting to appreciate how useful it is to be able to offer clients greater choice but there is huge potential and opportunity for the new brokers entering the market if we can get these brokers to fully understand and embrace the seconds market. But we need to see this reflected in the qualifications and training these new advisers are expected to take.

Just last month a number of specialists in the industry renewed their calls for a dedicated bridging qualification to be introduced but perhaps what we really need is a re-evaluation of the current CeMAP qualification to ensure it reflects the entire market we’re currently operating in. Ask a new mortgage adviser and you can be virtually certain they feel much of CeMAP is not relevant to their role. Clients have a range of mortgage needs that can be met through blended solutions and a variety of products. We need the training brokers receive to reflect that and to bring specialist finance into the mainstream fold.

www.promisemoney.co.uk

Latest Articles

Whole-of-Market Guidance for Generational Second Charges

Securing competitive terms on generational second charges requires expert underwriting knowledge. In addition, our specialist broker team works directly with over 90 specialist lenders across the UK.

Consequently, reviewing your generational second charges options with an FCA-authorised specialist credit broker ensures whole-of-market access while avoiding unnecessary fees and delays.

Specialist Underwriting & Whole-of-Market Access

Because specialist lending facilities require bespoke underwriting, comparing lenders across the UK is essential. Explore our complete guide to Secured Loans Desk to understand how different lending criteria apply to your requirements.

Promise Money is an independent credit broker authorised and regulated by the Financial Conduct Authority (FRN 681423). Our experienced team reviews your specific circumstances to secure optimal terms across 90+ UK lenders.