Increase in second charge loan requests revealed
Second mortgage specialist SoMo revealed that in April the number of inquiries about such loans from advisers increased by 63%, following its information campaign.
SoMo has set out to ensure that mortgage advisers are aware of how second-charge loans can help many of their clients, and its survey figures for April suggest this strategy is paying off. Second mortgages now account for more than half of all lending activity at the company, with these loans being sought by both homeowners and small businesses.
SoMo chief executive Louis Alexander told the Mortgage Introducer that business and home owners are now feeling the pinch of the rising cost of living, making second charge loans more vital than ever. He then went on to say:
“We’re seeing brokers, intermediaries and clients turn to SoMo because we’re able to offer a specialist, solutions-based approach to second-load lending, a 70% LTV over OMV and rates from 0.6% pcm.”
The campaign the company launched to raise awareness of sub-loans included sending helium-filled promotional balloons to mortgage advisers, photos of which they then shared on social media sites such as Twitter and Instagram.
SoMo is a commercial lender that has sought to focus on the second-charge market since its launch. Training in different specialized areas of the market can be invaluable for advisors even after earning their CeMAP qualification, as the mortgage market is constantly changing.