The Intermediary – August 2025 - Flipbook - Page 70
S E C O N D C H A RG E
Opinion
Niche to norm: Service
strategy will shape
he second charge
mortgage market is
in the middle of an
exciting chapter. In the
12 months to June 2025,
Finance & Leasing
Association (FLA) data showing a 25%
increase in new business value on the
previous year has understandably
caught everyone’s aention. It’s
evidence that more borrowers – and
their advisers – are recognising the
value and positive outcomes of second
charge mortgage products in today’s
economic climate.
But alongside this momentum there
is a growing reality: competition is
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The Intermediary | August 2025
intensifying and margins are under
pressure. In this environment, market
growth alone is not enough.
Sustainable success will depend on
how we, as lenders, deliver value – not
just in products, but in the quality of
service, the ease of doing business, and
the level of support we provide to the
intermediary community.
Strategic choice
One of the most encouraging shis
we’ve seen is the repositioning
of second charge from niche to
mainstream. Historically, the
product was viewed by some as being
outside the mainstream. Today, it
is increasingly viewed as a strategic
financial tool – a way to avoid the cost
and inconvenience of refinancing an
existing first charge mortgage while
accessing capital for life’s bigger needs.
Second charge has always been
known for debt consolidation, but
there is a much wider need, from
home improvements, major life events
and even private school fees. These
are not distressed scenarios; they are
deliberate, planned financial decisions
made with the support of a qualified
SIMON MARTIN
is chief commercial officer
at Interbridge Mortgages
adviser. Second charge customers
come from a range of backgrounds
and there are high quality, low
risk opportunities for brokers and
lenders alike.
25% growth
It’s easy to get carried away with
headline growth figures, but
we should look beneath the
surface. This increase is
a result of both higher
demand and greater
accessibility.
