The Intermediary – August 2026 - Flipbook - Page 49
S E C O N D C H A RG E
Opinion
A pause in the rise
of second charge
mortgages
I
believe that the blip in the
inexorable rise in second
charge volumes last month
can hardly come as a surprise.
Inevitably, every upward trend
is accompanied by a lull while
the sector takes a breath. I predict that
2026 will see a return to consistent
growth for the sector.
Even though it was a mere 1% drop
over the same period in 2025, it won’t
have stopped some talking heads who
still like the opportunity to talk the
second charge sector down. To those
doomsayers, all I can say is watch this
space as there is plenty of good news
just around the corner for the second
charge sector.
The most important is that, not
one, but two new lenders are reported
to be joining the growing number of
lenders in this market. If anything
was shows confidence in the sector, it
is the arrival of new blood.
The people behind these new
enterprises will have taken a long
hard look at the channel and decided
that this is an ideal time to join the
party. And who can blame them,
with the indutsry boasting over two
years of continued growth, which
can be aributed to an increasingly
positive response from the growing
number of intermediaries who are
supporting the sector.
Embracing change
Surely, it is beyond dispute that we
have all benefited from technology in
our everyday lives as much as we have
in our business lives.
The new generation of advisers,
who have only known the advantages
that the internet and instant
communication brought to the
mortgage industry, would shudder
if they were placed back in a late
20th century industry with its paper
application forms which had to be sent
to lenders by snail mail.
For those of you with long
memories, I am sure you remember
how long it took to receive a return
communication back, outlining
what extra customer information
was required to have the application
placed in the queue for the aention
of an underwriter. This was just the
beginning of the journey towards
a mortgage or loan acceptance, let
alone an offer. Persuading clients
There is still plenty
of good news just around
the corner [...] two new
lenders are reported to
be joining the growing
number of lenders in the
market. If anything shows
confidence in the sector, it
is the arrival of new blood”
to send documents like P60s and
payslips was also at the mercy of
the Post Office. Weren’t we excited
when we could finally use a fax
machine to send over forms and then
supporting documentation?
It is easy to forget that the
technology which we have integrated
into our businesses is just a branch of
the same evolving front that is making
such an impact in all aspects of our
lives, both personal and professional.
The important lessons we have
to acknowledge start with the fact
LAURA THOMAS
is regional sales manager
at Equifinance
that we cannot hold back progress,
even when it can be frightening. The
science that gave us the ability to book
flights and holidays online at two in
the morning with all the convenience
that goes with that ability, is the same
science that is powering the adoption
of artificial intelligence (AI).
So, before we moan about the
process and the glitches and bumps
in the road that are still the lot of the
broker community, it is a good idea to
recognise how far we have come. The
perfect mortgage process may be still
some way off, but like the Holy Grail it
is a goal worth pursuing.
I still get a few objections to the
use of a second charge mortgage over
a remortgage.
Some say second charge mortgages
are too expensive; however, rates are
at historic lows for the sector. We
also need to put this objection into
perspective.
Rates for second charge can never
match those of first charge mortgages
because of the added risk associated
with taking the second charge behind
a first charge mortgage.
Others say they are too complicated.
Back in the day, there was some truth
that because second charge mortgages
were administered differently than
first charge mortgages, it could
lead to confusion if they were not
explained properly.
Today’s second charge products are
now the most transparent and simple
products to understand and speak to
customers about with conviction. ●
August 2026 | The Intermediary
47
