The webinar poll, conducted by specialist lender Central Trust, also found that 61% of broker respondents experienced problems placing cases with self-employed and contractor clients due to reduced income during the COVID-19 pandemic.

Read more: 2021 was a positive year for second charge.

“These findings highlight the fact there is still a real need for education in the marketplace, about second charge mortgages and how and when they can be an alternative to a remortgage and a good customer outcome in certain circumstances,” Maeve Ward, director of commercial operations at Central Trust, said. “I’m confident that when brokers fully understand how and when a second charge mortgage might be the right outcome, they will look to offer them either directly or via a master broker.

“Many self-employed borrowers will be looking to capital raise and a second charge may well be the best solution. However, most lenders operating in the market will fall short of the self-employed borrower’s requirements because they will assess the income from the most recent SA302 – which will relate to the period of the pandemic – and not take into consideration what went on before or how the business might now be operating at pre-pandemic levels.

Read more: Remortgaging and product transfers set to boost second charge lending.

“Brokers should take the time to become knowledgeable about the second charge market. That way, they will be both following the spirit of the Mortgage Credit Directive (MCD) and be much more likely to help their clients find the best solution for their circumstances.”

Central Trust said the responses emerged during a Lender Spotlight session – held in conjunction with Knowledge Bank – based on the specialist lending marketplace which had over 100 brokers in virtual attendance.