The Intermediary – May 2025 - Flipbook - Page 8
S E C O N D C H A RG E
In focus
FASTER,
SMARTER,
SIMPLER
DIGITAL TRANSFORMATION IN
THE SECOND CHARGE MARKET
Bill Lumley for The Intermediary
The second charge mortgage market is
accessibility and appeal across the second
experiencing a thorough technological revolution
charge market.
that is reshaping the way borrowers access home
equity, and how brokers manage applications.
With lending in this sector reaching
£1.6bn in 2024 – a 12% year-on-year increase,
The second charge process, once bogged down
by manual paperwork and lengthy approvals,
is being transformed by digital platforms
and automation.
according to Bank of England and Finance
Automation in underwriting, for example,
& Leasing Association (FLA) data – digital
leverages artificial intelligence (AI) to analyse
platforms, automation, and analytics are driving
credit profiles, property data and financial
unprecedented efficiency and accessibility.
histories in real time, slashing approval times
from weeks to days.
Application automation
proprietary technology to integrate credit bureau
popularity as homeowners seek alternatives
data, ensuring swift, accurate decisions.
to remortgaging. This is particularly the case
Shelley Stern, director of mortgages at
for those locked into low-rate fixed mortgages
Masthaven, highlights this shift: “We’re
secured before the 2022 interest rate hikes.
working towards rolling out a new system that
An estimated 40,000 households will opt for
will fully automate the application process,
second charges in 2025, building even further
something we see as critical in today’s market, as
on the £6.5bn in equity that has been accessed
intermediaries are under more pressure than ever
since the pandemic.
to act quickly.
Technology is a driving force behind this
market movement, enhancing efficiency,
6
Lenders such as Together, in one example, use
Second charge mortgages have surged in
The Intermediary | May 2025
“When a deal is time-sensitive, waiting days for
a decision just isn’t good enough for their clients.”
