The Intermediary – November 2025 - Flipbook - Page 93
S E C O N D C H A RG E
Opinion
Seconds: A firstchoice option
S
econd charge lending is
having a moment, and
has more than earned its
place on a broker’s radar.
At Norton, we’ve been
completing faster than at
any time before.
One recent case involved a client
rejected for a remortgage due to
unsecured debt, despite having a clean
credit profile. The broker submied
the case at 3.45pm. By 2.43pm the next
day, funds were in the client’s account.
That’s not a one-off. Another
client, burdened with over £60,000
in unsecured debt and paying £2,136
per month, was able to reduce their
monthly outgoings by over £1,500 with
a second charge. The deal completed in
just four working days.
These timelines are possible
because of how second charges are
evolving – faster underwriting, slicker
digital journeys using e-signatures
and automated valuation models
(AVMs), increasingly flexible lender
criteria. All of this makes it easier for
brokers to help clients act fast and
do so without disturbing their first
charge mortgage.
EDDIE LAU
is broker account manager
at Norton Broker Services
Raising standards
There’s a growing number of lenders
improving the speed and appeal of
their second charge products. Selina
Finance, for example, has revamped
its home equity line of credit (HELOC)
offering, giving borrowers flexible
access to funds, rather than in a lump
sum. New entrants like Interbridge
are shaking things up with fresh
thinking and faster processes. More
lenders means more competition,
which means beer outcomes on rate,
criteria, and service levels.
This isn’t just anecdotal. Second
charge business volumes are growing,
with July 2025 data from the Finance
& Leasing Association (FLA) showing
a 15% yearly rise in new business.
That followed a sustained period
of growth over 12 to 18 months,
where affordability concerns and
remortgaging challenges led brokers
to consider second charges more
regularly. But even as inflation eases
and swap rates sele, demand hasn’t
gone away.
Why? Because second charges don’t
just offer a plan B, they’re oen the
best-fit solution for borrowers.
Now’s the time
Second charges aren’t a niche
solution anymore. Their days of
being seen as a last resort are long
gone. Whether debt consolidation,
home improvements, school fees, or
development funding, second charges
are delivering speed, flexibility, and
value to a wider range of clients than
ever. If you’ve never recommended
a second charge before, now is the
time to look again. With the right
partner and the right process, you
could be opening the door to solutions
that serve your clients beer than
ever before. ●
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February 2025 | The Intermediary
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