The Intermediary – May 2025 - Flipbook - Page 27
S E C O N D C H A RG E
In focus
charge market
all brokers?
Cost-of-living pressures: Rising
household costs are pushing
homeowners to consolidate unsecured
debts into a single, lower-rate secured
loan, freeing up monthly cashflow.
Home improvement boom:
With moving costs remaining
high and housing stock limited,
more homeowners are borrowing
to improve rather than relocate.
The second charge market has seen
notable increases in loans for home
renovations, extensions, and energy
efficiency upgrades.
Self-employed and complex
borrowers: Traditional remortgage
routes are oen closed to selfemployed clients or those with
complex incomes. Second charge
lenders offer more flexible
underwriting, opening crucial doors
for these customers.
Interest rate environment: Many
homeowners are still on historically
lower fixed rates; remortgaging means
sacrificing these deals, making second
charge loans the preferable option for
additional borrowing.
According to the Finance & Leasing
Association (FLA), around 60% of
second charge loans are used for
debt consolidation, while 25% fund
£2bn+
Lending volumes projection for 2025
home improvements — evidence of
the product’s relevance across diverse
financial needs.
Seconds success
Loans Warehouse has positioned
itself as one of the UK’s leading
second charge brokers, consistently
outperforming market growth.
In 2024, the business reported
a 35% increase in second charge
completions, outpacing the overall
market rise of 26%.
Notably, Loans Warehouse has
developed strong partnerships with
key lenders, providing brokers with
access to exclusive rates and faster
processing times.
Digital innovation has also been
central to second charge lending
success. Investment in streamlined
technology platforms has reduced
average application times by 20%,
while maintaining industry-leading
customer satisfaction scores, which
currently stand at five out of five
on Trustpilot.
In fact, Loans Warehouse was
recently awarded ‘Best Quality
Packager’ at the National Mortgage
Awards – Second Charge, testament to
its reputation for service excellence.
Another major driver has been the
broker support proposition. Loans
Warehouse provides bespoke training
and marketing support to networks
and directly authorised (DA) firms,
ensuring brokers are not only aware
of second charge opportunities, but
confident in advising on them.
A clear message
The biggest networks and brokers are
aware the second charge market is no
longer an optional extra for brokers
– it’s an essential part of the advice
process. Brokers who fail to engage
with this market risk falling behind as
competitors and direct-to-consumer
platforms step in to fill the gap.
By partnering with a specialist
like Loans Warehouse, brokers can
meet their clients’ needs across the
full mortgage journey: from initial
purchase to remortgage, second
charge, and beyond.
With demand set to grow even
further in 2025 and beyond, there has
never been a beer time for brokers to
embrace the opportunity. ●
£254bn
Product transfer total after the projected increase of 13% in 2025
February 2025 | The Intermediary
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