Work to do on Seconds

I think it was Mark Twain who once wrote “facts are stubborn things but statistics are pliable” and he certainly had a point. Despite being a mathematical science, and therefore, in theory, unquestionable, the fact remains that statistics can often be used to make any argument, depending on how they’re interpreted.

Let’s take a look at a current news story in the second charge world that was based upon a statistical study.

Accord to research by SimplyBiz Mortgages, only 15% of mortgage broker are not involved in the second charge market at all.

‘Success!’ I hear the second charge industry cry. We’ve done it, all that education and information over the last few years to encourage brokers to treat seconds in exactly the same way as they do firsts has paid off. Job done. Or is it? You see, the merit of such a statistic lies wholly with how one interprets the term ‘involved.

Are we to believe that 85% of mortgage brokers are consistently considering a second charge alongside a remortgage? That seconds are as important piece of their tool box as their first charge counterpart?

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Or, by ‘involved in’ are we perhaps including those who occasionally look at seconds only if a first charge can’t be used? Maybe a few cases per year at best, if they happen to remember.

If it’s the latter, and my experience suggests it is,, whilst it’s a step in the right direction I don’t think we can point to this as a massive success just yet.

Indeed if success is measured by brokers consistently comparing second charges and remortgages, and offering which ever is most appropriate, I wouldn’t be surprised if closer to 85% of the time this doesn’t happen.

The fact is ticking a box to say you offer seconds is easy – actually offering them consistently is another matter although its easier than many brokers think with simple referral or specialist structuring options offered by most decent master brokers.

It’s certainly a good thing that seconds are being talked about more and appear to be on most brokers’ radars at least. But we should take these sorts of statistics with a pinch of salt. It’s clear to see from the amount of business being done in the second’s arena at present, despite the growth we’ve seen, that most brokers are still not as ‘engaged’ as they could be.

www.promisemoney.co.uk

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