The Intermediary – August 2025 - Flipbook - Page 71
S E C O N D C H A RG E
Opinion
and
seconds
We know that investing in people
is just as important as the investment
in the platform that delivers the
application. A frictionless process
needs both.
Looking ahead
the market’s standards and create
more options, not make it riskier.
Service still wins
Advisers are more aware of second
charge and technology has made
the application process faster and
more transparent. But we must
be careful: growth in volume does
not automatically mean growth in
profitability or customer value.
Lenders are looking for innovative
ways to win business, and while
that benefits the end borrower in the
short term, it creates pressure to find
efficiency gains and non-price related
wins elsewhere in the process.
The answer lies not in racing to
the boom on price, but in building
sustainable advantages – service and
product quality, operational speed,
clear communication, and tools that
make it easier for brokers to package
and submit cases right first time. A
competitive market should help raise
In 2025, speed of service alone is no
longer a key differentiator – it’s a
given. Brokers and customers expect
decisions in hours, not days.
The true measure of service now
is combining speed with accuracy,
overlaid with transparency at
every stage, delivering the right
customer outcomes.
From my perspective, the lenders
that will thrive are those that invest in
broker relationships, support efficient
packaging and maintain proactive
communication.
When a lender gets these basics
consistently right, it builds trust – and
that trust translates into confidence
and repeat business, even in a crowded
marketplace.
The adoption of application
programming interfaces (APIs),
automated decisioning, and document
recognition tools has transformed
the industry’s ability to process
applications at speed. But technology
alone won’t protect margins or
win loyalty.
It’s the combination of smart
systems and knowledgeable people
that creates a compelling broker
experience.
The remainder of 2025 will
likely bring more of the same
macroeconomic uncertainty we’ve
become accustomed to in recent years.
For the second charge sector, I see
three priorities emerging:
1. Creating greater awareness and
consideration of the product
category – yes, the age old bale
will continue, with brokers and
lenders both playing a pivotal role in
making this happen.
2. Managing risk intelligently
— balancing accessibility with
robust affordability checks,
even as pressure to safely grow
volumes increases.
3. Driving operational excellence — so
lenders maintain service standards
even in peak demand periods,
without sacrificing standards for
customers and brokers.
If we succeed in these areas, we
will not only sustain growth but
improve the quality and stability of
that growth.
Second charge lending has evolved
from a specialist niche into an integral
part of the mortgage mix. The
market’s 25% growth is proof of that,
and we estimate the market to be over
£200m in July – the highest it’s been
for many years. But the next phase of
development will be about more than
just bigger numbers.
It will be about raising the bar
on service, strengthening broker
relationships, delivering great
customer outcomes and positioning
second charge as a product of choice
for well-informed, long-term
financial planning. ●
August 2025 | The Intermediary
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