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Second-charge mortgages

Journalist: Natalie Thomas, Freelance

ended 30. June 2023

Hello, 

I am writing a feature for The Intermediary magazine about second-charge mortgages. 

My questions are; 

1; Do you see demand for second-charge mortgages? who from/what for? 

2, Are you comfortable advising on seconds - if not, what would need to change? 

Thank you 

3 responses from the Newspage community

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Editor
Darryl Dhoffer
Founder at The Mortgage Geezer
I honestly thought since the fallout of Covid, I would see more clients with much more secured and unsecured debts, which was not immediate (thankfully). However with increases in interest rates, since September last year, I am talking to more and more clients with much higher levels of unsecured debts, which is rising with the cost of living crisis, which is a concern. 2nd Charge Mortgages don't always suit everyone, but could help many clients that need to reduce outgoings - we as a broker community need to be offering these to clients even on an advised or non-advised status through a packager
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Editor
Ranald Mitchell
Director at bad credit mortgage specialists Charwin Mortgages
We see a large demand for second-charge mortgages (secured loans), primarily for debt consolidation and home improvements.

The enquirers typically have good mortgage terms that need to be preserved, coupled with high-to-value requirements to achieve what they are looking to do, or poorer credit statuses, preventing them from wider access to the mortgage market.

We have packaged and advised on secured loans for 6 years now, having been a bit fed up with referring to third-party firms and not getting conversions. We now have one of the largest lender panels in the UK, and it has also allowed us to be fair and competitive on fee charging.
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Austyn Johnson
Founder at Mortgages For Actors
Personally, hate them. If its absolutely perfect, I'll do one. But I have also noticed that a high % of the debt con cases we do, have 1 or 2 of these to get rid of.