The Intermediary – May 2025 - Flipbook - Page 29
S E C O N D C H A RG E
In focus
Expertise is crucial
in the growing
seconds market
U
ncertain economic
conditions and a
higher interest rate
environment have
significantly increased
demand for second
charges over the past few years.
Affordability challenges, combined
with access to cheaper long-term fixedrate products, have been key drivers,
as borrowers explore alternative ways
to raise capital without remortgaging.
The Finance & Leasing Association
(FLA) found in March 2025 that new
business volumes in this sector grew
by an impressive 18%, continuing the
upward trend observed throughout
most of the previous year. As we move
further into 2025, demand is expected
to remain robust.
This surge in demand was
celebrated at the National Mortgage
Awards – Second Charges, hosted by
The Intermediary back in November.
It was fantastic to see the importance
of second charges within the industry
taking centre stage.
In the spotlight
Debt consolidation remains the
most common reason borrowers
turn to second charge mortgages.
According to FLA data, 58% of
transactions in March 2025 were used
for this, followed by a combination
of debt consolidation and home
improvements (22.6%). Nevertheless,
second charge mortgages are
incredibly versatile. Borrowers also
use these products to fund home
extensions, purchase additional
properties, provide financial
assistance to family members, or even
expand their businesses.
This flexibility makes second charge
mortgages a valuable tool for brokers
working with clients seeking tailored
financial solutions.
One of the standout features is the
speed at which funds can be released.
The process is oen completed within
a week or two, making it an aractive
option for borrowers who need fast
access to funds.
Clients with time-sensitive financial
needs can benefit greatly from the
swi turnaround times, and brokers
can provide efficient solutions without
the lengthy processes oen associated
with traditional remortgaging.
Expert solutions
Obtaining a quick and accurate
valuation report is a crucial part of
the second charge process. This is
important in the specialist lending
market, where borrowers oen have
complex financial arrangements or a
history of adverse credit.
Working with an experienced
provider can make all the difference –
a deep understanding of the valuation
process and a panel of qualified valuers
who can deliver reliable reports
within tight deadlines. This expertise
helps brokers secure the information
required to move transactions forward
without unnecessary delays.
An experienced provider does
more than just source valuers. They
can check access details, liaise with
applicants, and follow up at every
stage of the application process to
ensure deadlines are met.
In cases where post-valuation
queries arise, they act as
intermediaries between the broker,
lender, and valuer, ensuring that
issues are resolved promptly. This
can make a significant difference in
meeting clients’ expectations and
closing deals on time.
By handling the complexities of
the second charge process, providers
can allow brokers to focus on
JAMES GILLAM
is managing director
at Pure Panel Management
generating new business in areas
where they excel. By delivering
a seamless experience, brokers
can enhance client retention and
satisfaction, strengthening long-term
relationships.
For brokers unfamiliar with the
second charge market, partnering
with experts can also save valuable
time and resources. Providers can help
navigate the intricacies of the sector,
offering guidance on how to best
position these products for clients and
unlocking new earning opportunities.
Ramping up
In the current economic climate, it is
crucial for brokers to stay informed
about the advantages of second
charge mortgages. Understanding
the product’s versatility, speed, and
flexibility can help brokers beer
meet the needs of borrowers seeking
alternative solutions.
As demand continues to rise,
brokers have a unique opportunity to
capitalise on this growth.
Whether it’s helping clients
consolidate debt, fund home
improvements, or raise capital
for other purposes, second charge
mortgages are an invaluable tool in
today’s financial landscape.
By staying informed, partnering
with experienced providers, and
delivering tailored solutions, brokers
can not only meet their clients’
needs, but also position themselves
for success in a dynamic and
expanding sector.
In 2025, second charge mortgages
are set to remain a key player in the
specialist lending market, and brokers
who embrace this trend will be wellplaced to thrive. ●
May 2025 | The Intermediary
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