The Intermediary – April 2025 - Flipbook - Page 59
S E C O N D C H A RG E
Opinion
How smart tech is
powering second
charge growth
T
here’s no denying that
momentum continues
to build across the
second charge mortgage
market. For lenders and
brokers, this represents
both a commercial opportunity and a
reminder of the growing importance
of having the right tech infrastructure
in place to effectively meet this
rising demand.
The latest figures from the
Finance & Leasing Association (FLA)
demonstrate this consistent growth. In
January 2025, new business volumes
increased by 24% compared to January
2024, with 2,907 new agreements
totalling £146m, a 29% upli.
Over the 12 months to January 2025,
36,267 plans were taken out, marking
a 19% increase in volume. In addition,
according to analysis from Pepper
Money, more than 42,000 households
are expected to take out a second
charge loan this year alone, a 39% hike
in just two years.
However, as demand rises, so does
the scrutiny on this sector. Under
the Financial Conduct Authority’s
(FCA) Consumer Duty, advisers are
under mounting pressure to ensure
that customers understand the
long-term impact and suitability of
secured borrowing.
This is where the role of the
intermediary market becomes even
more critical, and where technology
can support beer advice.
Historically, second charge
applications have been labour
intensive, oen involving manual
data entry, rekeying, and lengthy
processing times. In today’s market,
that’s no longer sustainable, nor
acceptable, to customers who expect a
slicker experience.
A key development within this is
the introduction of instant sourcing
tools tailored specifically for second
charge lending. For example, our
SecondsSourcing platform, which is
being piloted by forward-thinking
lenders – Pepper, Interbridge, and
Selina – gives brokers real-time access
to multiple quotes without the need to
complete a decision in principle (DIP).
It allows quick comparisons based on
actual lending criteria, which can be a
game-changer in complex or timesensitive cases.
Streamlining
The recent rollout of application
programming interface (API)
integrations and specialist platforms
is also starting to remove friction. For
instance, full two-way API links with
a growing number of second charge
lenders now allow brokers to go from
sourcing to application submission
without switching systems. This
ensures quicker, more accurate
decisions, streamlined processes and
smoother case tracking.
This sort of innovation is not just
about convenience. It’s about helping
brokers demonstrate value, meet
compliance expectations, and provide
beer outcomes for customers.
The rise in second charge lending
isn’t just a passing trend. It signals
a real shi in borrower behaviour
NEAL JANNELS
is managing director at One
Mortgage System
and a beer understanding of the
options available.
New lenders entering the market
with specific product ranges and
flexible pricing suggest competition
will only grow. That means more
choice, but also more complexity.
Brokers who want to stay ahead
should look at how technology can cut
admin time, improve accuracy, and
help drive beer client conversations.
Whether it’s customer relationship
management (CRM) systems,
sourcing tools or integrated document
and messaging features, technology
must be viewed as an essential partner
for lenders and advisers, not just
an option.
The second charge market is on the
path to steady growth. With higher
awareness, stronger product ranges
and active intermediary engagement,
it’s becoming part of the mainstream.
However, growth also brings pressure
on systems, processes and compliance.
Brokers who adopt the right tools
will be in a stronger position to meet
demand, offer beer service, and
add real value. ●
The right technology has the power to supercharge broker processes
April 2025 | The Intermediary
59
