The Intermediary – September 2025 - Flipbook - Page 71
S E C O N D C H A RG E
Opinion
Understanding
second charge
customers
A
s a second charge
lender, we are
commied to
understanding who
our customers are and
how we can create
solutions that meet their needs.
The second charge market has
always played an important role in
providing financial flexibility, yet it is
oen misunderstood. For brokers, the
real opportunity lies in recognising
the types of customers who may
benefit from a second charge mortgage
and ensuring they are properly served.
What we see consistently is that
second charge borrowers are not
a single type of customer, but a
collection of different profiles – each
with their own motivations. By
sharing some broad insights into these
groups, we hope to help brokers spot
the signs within their own client base.
Families seeking financial
breathing room
One clear group we see are customers
who have steady incomes, but are
weighed down by short-term debt, the
payments on which are hampering
their ability to meet their financial
goals. For these families, a second
charge mortgage can be a lifeline –
helping them consolidate unsecured
debts into a more manageable
monthly repayment.
Middle-aged professionals
with career stability
Another common profile is
established professionals in their
forties and fiies. Many in this group
have built up significant equity in
their homes, but their borrowing
needs have shied. They may be
looking to fund home improvements,
support children through higher
education, or invest in additional
property ventures. For these
customers, a second charge mortgage
can provide a straightforward way to
access capital while leaving existing
mortgage arrangements untouched.
Older households managing
later-life expenses
We also see demand from older
households – oen ‘empty nesters’
or parents whose grown up children
have returned home aer time away.
Many in this profile are financially
comfortable, some even with higher
household incomes, but they still
want that flexibility.
Whether it’s to assist children
onto the property ladder, help with
family weddings, or make significant
lifestyle upgrades, these customers
value the ability to raise funds in a
way that doesn’t disrupt long-term
financial plans.
Single earners and young
couples starting out
At the other end of the spectrum, there
are younger households – either single
income earners or couples who have
started on their property journeys. To
build up significant savings, they may
have aspirations that they would like
to fund sooner rather than later.
For these customers, a second charge
can provide the means to invest in
their first renovations, help with
the costs when starting a family, or
consolidate debts.
Why this matters
These are just a few of the customer
profiles that benefit from second
charge mortgages, but hopefully they
illustrate that the customer is not the
CHRIS BENNETT
is product manager at
Interbridge Mortgages
‘last resort borrower’ stereotype. They
are oen stable, aspirational, and
creditworthy individuals with very
specific needs that are underserved by
the traditional market.
Identifying these profiles within
your client base can unlock valuable
opportunities – not only for business
growth, but for delivering the right
outcomes for your customers.
Meeting evolving needs
At Interbridge Mortgages, we
continuously review our products
to ensure they reflect the realities of
today’s households. We recognise that
flexibility, speed, and transparency
are crucial. But just as important,
we are commied to developing
solutions that can support a broad
range of customer circumstances
– whether that’s families wanting
to reduce their monthly outgoings,
professionals seeking investment,
or older borrowers looking for more
flexible options.
The second charge market is
evolving, and brokers are at the heart
of connecting customers with the
right solutions. By understanding the
different types of clients who may
benefit, you can ensure that when the
need arises, you’re ready to have the
right conversation.
Second charge mortgages are not
a niche solution; they are a versatile
tool that, when used responsibly, can
make a meaningful difference. As
brokers, you have the unique ability
to identify opportunities that others
might overlook. Together, we can
ensure that no customer segment
remains underserved. ●
September 2025 | The Intermediary
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