The Intermediary – March 2026 - Flipbook - Page 73
S E C O N D C H A RG E
Opinion
Robust demand.
Strong supply.
Better outcomes.
T
he second charge
market is no longer
niche. It is establishing
itself as a core
component of modern
mortgage advice. Yet,
despite its recent growth, it remains
only a fraction of its potential size.
Over the past few years, the market
has grown steadily, with last year’s
lending reaching over £2bn, up 24%
on 2025, according to Finance &
Leasing Association (FLA) figures.
Sales are also on an upward trajectory.
Even if volumes were to stabilise,
numbers are indicating we would
still be roughly 15% up on previous
years. But I do not expect the market
to plateau. The structural drivers
behind this growth are durable,
not temporary. And that is an
important distinction.
In a bubble?
Whenever a sector grows quickly,
the question inevitably arises: is this
sustainable? In the case of second
charge lending, the fundamentals
are strong on both the supply and
demand side.
Three years ago, the market was
heavily concentrated, with one
dominant prime lender operating at
scale. Today, we have at least four large
prime lenders competing at scale,
alongside a healthy group of specialist
lenders serving more complex niches.
That strength in depth maers.
Alongside that, second charge
lending remains notoriously difficult
to enter. The product complexity,
regulatory expectations and
technology investment required create
significant barriers to entry.
So, once a lender has commied to
this sector, they are unlikely to leave.
While some lenders – including us
at Interbridge – are newer brands,
the leadership teams behind them
bring decades of experience in this
market. That experience shows
in underwriting standards and
operational discipline. It is no accident
that the market leaders are run by
seasoned teams who understand the
nuances of second charge lending.
On the distribution side, we are
seeing similar robustness. The broker
landscape is diverse and sophisticated.
There are large, highly automated
brokers operating at scale, as well
as specialist firms focused on more
complex cases. Many are investing
heavily in technology, compliance and
people, widening access to consumers
while maintaining quality.
The results? Exceptional service
standards across the industry. The top
three lenders in the sector currently
maintain Trustpilot scores of
4.8 or above.
This is not the profile of a bubble.
It is the profile of a well-run industry
meeting a genuine need.
The demand story
The most compelling argument for
long-term growth lies on the demand
side. In 2007, the second charge
market was approximately three
times its current size in nominal
terms. Adjusted for wage growth and
inflation, it was even larger.
While we know that some lending
practices at that time would not meet
today’s standards, we are confident
that at least half of that historical
volume would comfortably align with
current regulatory and affordability
frameworks. That gap represents
significant untapped demand.
Today’s borrowers face very
different circumstances to those of
two decades ago. Millions are tied
into fixed-rate first mortgages secured
during a low-rate environment. For
JONNY JONES
is CEO at Interbridge Mortgages
many, remortgaging would mean
surrendering a highly competitive
rate and incurring substantial early
repayment charges. At the same time,
unsecured debt levels have risen,
credit card balances are increasing
and household budgets are under
increasing pressure.
In this context, second charge
lending provides a pragmatic
solution. It allows customers to raise
capital or consolidate higher-cost
borrowing without disturbing their
primary mortgage. On average,
customers consolidating unsecured
debt through a second charge loan
are saving approximately £400 per
month with us.
A call to brokers
For first charge brokers, this
represents a strategic opportunity.
Second charge should not be seen
as competition to the remortgage
conversation, but as a complementary
tool. Clients deserve advice that
considers all viable options – and
in many scenarios a second charge
mortgage is the most cost-effective,
least disruptive solution.
We believe that now is an excellent
time for brokers to broaden their
panel, deepen relationships with
experienced master brokers, and
ensure they can access the full range of
solutions available to their customers.
The second charge market is not
overhyped. It is underpenetrated.
For brokers, for investors, and most
importantly for customers, the
fundamentals point in one direction:
sustainable growth built on both real
economic and customer need. ●
March 2026 | The Intermediary
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