Increase in second charge loan enquiries revealed

June 12, 2022 by Brendan O'Neill

Lenders

The second charge mortgage specialist SoMo has revealed that April saw a 63% rise in the number of enquiries about these loans from advisors, following its information campaign.

SoMo has set out to ensure that mortgage advisors are aware of how second charge loans can help many of their clients, and its enquiry figures for April suggest that this strategy is paying off. Second charge mortgages now account for more than half of all of the loan business that the company is doing, with these loans being sought both by homeowners and small businesses.

The SoMo Chief Executive, Louis Alexander, told Mortgage Introducer that both business and home owners were now feeling the effects of rising living costs, making second charge loans more vital than ever. He then went on to say:

“We’re finding brokers, intermediaries and clients are turning to SoMo because we’re able to offer a specialist and solution-based approach to second charge lending, a leading LTV of 70% against the OMV and rates from 0.6% pcm.”

The campaign that the company launched to raise awareness of second charge loans included sending promotional balloons full of helium to mortgage advisors, which they then shared pictures of on social media sites such as Twitter and Instagram.

SoMo is a commercial lender that has sought to concentrate on the second charge market since its launch. Education on different specialist areas of the market can be very valuable to advisors even after getting their CeMAP qualification, as the mortgage market changes constantly.