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Admiral entering second charge market

ended 08. May 2023

According to a Newspager who attended NivoCon - the second charge tech conference - yesterday, Admiral, the FTSE 100-listed consumer car insurance brand, announced they have plans to enter the seconds market with a product that massively collapses time to completion via tech. Representing Admiral at the event was Craig Collins, Admiral's Specialist Mortgages Director, who previously worked at Pepper Money and Optimum Credit. We also see that Mike Walters, previously of UTB, has also just joined Admiral Money. We're told the launch will likely be hybrid, i.e. via brokers and direct, but they will monitor the direction of travel. With this in mind, a few Qs…

  • What are your thoughts on a brand such as Admiral entering the seconds market?
  • Why do you think they're entering the seconds market? Improved margins, an opportunity to bring the UK market in line with that of the US where seconds can be arranged in a matter of days?
  • Should seconds ever be offered D2C given that they are secured?
  • What impact would the entry of a brand like Admiral have on the seconds market, e.g. drive down rates, represent a major headache for existing players?
  • What are the risks of seconds for consumers (secured and amount of interest payable over the term), and the upside (more manageable monthly payments, etc)?

Any other thoughts, send them across.

2 responses from the Newspage community

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Editor
Samuel Mather-Holgate
Independent Financial Adviser at Mather and Murray Financial
Understandably Admiral are looking at higher margins, but they will need to balance the higher impairment charges that come with the seconds market. This is great news for customers, as this should see rates driven down. Advisers will relish the opportunity to provide recommendations of a top company like Admiral, and although clients can go direct I expect that the majority of their business will come through advisers unless they also have a big marketing budget.
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Editor
Riz Malik
Independent Financial Adviser at R3 Wealth
Given the current market, second charge loans are set to increase in popularity and Admiral should be welcomed with great enthusiasm alongside other potential entrants. An increase in competition can only serve to benefit the industry, providing a wider array of rate and criteria options for consumers. It is surprising that more mainstream lenders have not yet ventured into this arena considering the current market and the lucrative nature of second-charge lending.

While regulatory hurdles may pose challenges to newcomers, established providers such as Admiral who already offer unsecured lending are well-positioned to navigate these complexities.