The Intermediary – July 2026 - Flipbook - Page 69
S E C O N D C H A RG E
Opinion
Unlocking more
housing wealth
T
here is a contradiction
at the heart of modern
homeownership. Many
customers have never
held more value in their
property, yet many have
never been more careful about how
they access it. The clearest evidence
of that shi can be seen in the second
charge market.
Figures from the Finance & Leasing
Association (FLA) show lending
reached £2.34bn in the 12 months to
April 2026, up 28% year-on-year and
the highest level seen since before
the financial crisis. Those numbers
should make all of us in the lending
industry stop and think.
For years, we’ve used
homeownership as a shorthand for
financial security. Increasingly, I
think that’s an outdated view. Many
homeowners have substantial wealth
on paper, yet very lile flexibility
when life throws something
unexpected at them. A child needing
help with a house deposit. An ageing
ho suddenly needs
parent who
support. Essential home
improvements.
The challenge facing
many households today
isn’t affordability in the
traditional sense. It’s
liquidity. We’ve created
a situation where huge
amounts of wealth are
hile
tied up in property, while
financial flexibility remains
under pressure.
When I speak to brokers, they don’t
talk about customers borrowing for
the sake of borrowing. What I hear
are customers trying to solve practical
problems. They want to improve a
home rather than move. They want
to support family without derailing
their own financial plans. They want
access to capital without sacrificing a
mortgage rate they may never be able
to replace. Aer several years of rate
volatility, many borrowers are either
siing on mortgage deals they worked
hard to secure and are understandably
reluctant to disturb or they are
nervous about rates. Protecting an
existing first charge mortgage has
become a financial objective in its
own right.
That’s why I think the conversation
is changing. Five years ago, customers
oen started with a borrowing
requirement. Today, they start with
an outcome.
Changing perceptions
FLA data shows that more than a third
of second charge lending is being used
for home improvements, either on its
own or alongside debt consolidation.
Again, I don’t believe that’s simply a
lending trend. It’s a reflection of how
people are living.
Families are staying in properties
for longer. Adult children are
remaining at home for longer. Many
people are helping younger family
members while simultaneously
supporting older relatives. Others
t suit
are adapting homes to
changing circumstances
rat
rather
than taking on
the cost of moving
mo
– the
traditional housing
journe has become far
journey
predictable
less predictable.
That’s why I believe
bro
brokers
have never
been more important.
cust
For some customers,
a
remort
remortgage will remain
the right solution. For others, a
further advance may be the best route.
But there are also many customers
whose largest financial asset sits
within their property and whose
existing mortgage arrangements
remain worth preserving. In those
circumstances, it makes sense for
second charge lending to form part of
the advice conversation.
Increasingly, the customers using
second charges aren’t looking for a last
resort. They’re making considered
JONNY JONES
is CEO at Interbridge Mortgages
Huge amounts of
wealth are tied up in
property, while financial
flexibility remains
under pressure”
financial decisions. They are weighing
up options, protecting existing
arrangements and choosing the route
that best fits wider objectives. That’s
a very different picture from the
one many people still associate with
the market.
Looking ahead, I suspect the gap
between property wealth and financial
flexibility will become even more
pronounced. Customers are living
longer, supporting family for longer
and staying in their homes for longer.
At the same time, the cost of adapting
those homes and navigating life’s
major events continues to rise.
The industry has traditionally
viewed property equity as something
that becomes relevant when a
customer moves home. I think that’s
the wrong way to look at it. For a
growing number of homeowners,
equity is no longer a future asset. It’s a
present-day financial resource.
The brokers who recognise that shi
earliest will be the ones best placed to
help customers navigate it. The real
question facing many homeowners
today isn’t whether they have wealth.
It’s whether they can actually use it
when they need it. ●
July 2026 | The Intermediary
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