Broker & Intermediary Briefing
Are Mortgage brokers engaging with second charges?
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Engaging with second charges?
It’s been a key question in the mortgage industry since MCD was introduced (and, by rights, should have been a topic of discussion much earlier) – are mortgage brokers as engaged with second charge products as they should be?
Since the new regulation came into effect in 2016 the message has been clear. Brokers should be viewing seconds in exactly the same way as firsts. A second charge mortgage should be given just as much consideration as a remortgage when assessing a client’s needs and the right solution should be based on which is more suitable.
Of course, just because that’s the way it should be doesn’t necessarily mean that’s the way it is. The vast majority of players in the second charge arena would agree that for the most part mortgage brokers just aren’t engaging with seconds as much as they could, or should.
Understanding Market Rates & Repayment Terms
Therefore, the results of a recent survey by SimplyBiz were very surprising and revealed only 15% of mortgage broker are not involved in the second charge market at all.
How can this be? How can a massive 85% of mortgage brokers be engaging with the secured loan market when those of us operating in it are seeing no real evidence of this. The answer, I expect, lies in the word ‘involved’.
The problem is we have no concrete definition of what is meant by ‘involved in the second charge market’. Are we talking about mortgage brokers giving due consideration to a second charge loan each time they see a client looking to raise funds? Assessing the clients’ needs, current mortgage, circumstances and additional requirements before deciding whether a remortgage, further advance or second charge is the best option?
Key Criteria & Application Guidance
Or, more likely, by ‘involved’ do we simply mean a broker will consider a second only if there is no possible way of doing a remortgage and, therefore, a second charge won’t even come into the conversation unless the remortgage can’t be done?
The fact is, if seconds were being given as much consideration as first charges, the lending figures would be considerably higher. The evidence on the ground suggests most mortgage brokers, whilst ticking a box to say they offer seconds, are not actually offering them consistently but rather, still seeing them as a last resort if at all.
Even a “second charge industry expert” was quoted this month in print saying “The roll call needs to be further advance, remortgage and then a second charge and only if neither of the other two are viable” With such a misunderstanding of the advice process its hardly surprising brokers struggle to properly incorporate seconds in their business.
Lending Considerations & Next Steps
The frustrating thing is, if brokers were to offer seconds in line with first charges the benefits for their business would be tangible. As consumer awareness of seconds grows, thanks to the work of the industry, we will get to a point where more clients are actively seeking out the product. If brokers are not able to offer them or not making it known that they can, these clients will be lost to comparison sites and end up with another broker who will probably pick up future remortgage business and try to churn any previously sold protection products.
For us to really get to a point where we can claim 85% of brokers are embracing second charges we need a more consistent approach.
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Intermediary Guidance for Broker Second Charge Engagement
Structuring competitive terms on broker second charge engagement for your clients requires direct access to specialist underwriters. In addition, our intermediary lending desk works directly with over 90 specialist lenders across the UK.
Consequently, partnering with Promise Money ensures whole-of-market broker access, transparent procuration fees, and rapid decisions in principle for your client cases.
Specialist Underwriting & Whole-of-Market Access
Because specialist lending facilities require bespoke underwriting, comparing lenders across the UK is essential. Explore our complete guide to Secured Loans Desk to understand how different lending criteria apply to your requirements.
Promise Money is an independent credit broker authorised and regulated by the Financial Conduct Authority (FRN 681423). Our experienced team reviews your specific circumstances to secure optimal terms across 90+ UK lenders.
Key Takeaways: Broker Second Charge Engagement Broker Briefing
Additionally, partnering with Promise Money gives intermediaries whole-of-market access across 90+ specialist second charge lenders.
Furthermore, direct access to our specialist underwriting desk protects client relationships while guaranteeing transparent and competitive proc fees.
Consequently, complex borrowing scenarios—including high LTVs, adverse credit, or complex income—are structured efficiently without delays.
Therefore, introducers can submit case details directly online or via phone to secure rapid Decisions in Principle.
Specifically, second charge homeowner facilities are assessed with commercial speed to meet critical funding deadlines.
Moreover, comprehensive lending criteria checklists ensure client applications are fully structured prior to lender submission.
In addition, dedicated underwriter communication guarantees updates at every milestone from enquiry through to completion.
Crucially, keeping existing low-rate primary mortgages completely untouched saves your clients thousands in remortgage penalty fees.
In practice, our intermediary team handles valuation queries and legal liaisons so you can focus on client advisory.
Above all, whole-of-market access allows you to place non-standard cases that mainstream high street lenders routinely decline.
As a result, your brokerage delivers reliable capital-raising solutions even for complex homeowner borrowing requirements.
After all, working with an established specialist credit broker with 35+ years experience protects your professional reputation.
Meanwhile, dedicated broker portal tools provide real-time tracking on survey sign-offs and fund disbursements.
Indeed, high LTV options up to 100% or more allow clients to unlock needed capital without moving home.
Understanding Market Rates & Repayment Terms
Finally, dedicated support ensures buy-to-let second charges and commercial referrals complete without administrative friction.
Unlike traditional broker networks, Promise Money requires zero membership fees or exclusive volume commitments.
Fortunately, third charge facilities and equitable charges provide flexible alternatives where first charge consent is restricted.
Ultimately, transparent broker commission schedules ensure prompt proc fee payouts upon case fund release.
Similarly, fast electronic identity checks and automated valuation models speed up loan processing considerably.
Because lending criteria varies widely, independent whole-of-market access ensures the optimal lender match every time.
Specifically, second charge homeowner facilities are assessed with commercial speed to meet critical funding deadlines.
Moreover, comprehensive lending criteria checklists ensure client applications are fully structured prior to lender submission.
In addition, dedicated underwriter communication guarantees updates at every milestone from enquiry through to completion.
Crucially, keeping existing low-rate primary mortgages completely untouched saves your clients thousands in remortgage penalty fees.
In practice, our intermediary team handles valuation queries and legal liaisons so you can focus on client advisory.
Above all, whole-of-market access allows you to place non-standard cases that mainstream high street lenders routinely decline.
As a result, your brokerage delivers reliable capital-raising solutions even for complex homeowner borrowing requirements.
After all, working with an established specialist credit broker with 35+ years experience protects your professional reputation.
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Steve Walker
Managing Director – 40 years of experience
Founding chairman of the Corporation of Finance Brokers. Specialist in UK residential mortgages, secured loans, and regulated bridging.
Simon Carr
Commercial Director – Proptech
Specialist in complex mortgages, commercial underwriting, and developer finance. Architect of Promise Money’s automated lending tools.