Optimum Credit securitisation significant for second charge market

10 July 2017

According to Tim Wheeldon, COO at Fluent Money, the UK’s largest second charge distributor, the recent announcement by Optimum Credit of a successful securitisation demonstrates the growing importance and status of the second charge market.

He said, “It is now nearly 10 years since the credit crisis that froze the securitisation market. Securitisation activity amongst first charge lenders has been increasing for the past few years, but this is the first one from a second charge lender. For all of us whether fully engaged in the sector as we are at Fluent, or in the wider lending market, this is a significant moment.

A successful securitisation sends a signal that the capital markets are now open for business to the second charge sector. Access to funding will become easier and other players will be encouraged to follow where Optimum has led.

For the wider market, it demonstrates that the investment market has an appetite for good quality loans. It only adds to the good news that continues to support the wider acceptance of secured loans as a viable alternative to remortgaging.

The adviser community has understandably wanted to see real evidence of the standing of the second charge market. Along with the growing new business figures and falling arrears and repossession data, the successful securitisation by Optimum Credit very much offers real proof that the secured loan sector is deserving of a place at the lending top table.”