The Intermediary – October 2026 - Flipbook - Page 57
businesses, meet major one-off expenses, support
relatives or raise capital for investment purposes.
“Second charges are increasingly being
considered as a broader capital-raising
option, rather than simply a product for debt
consolidation,” Lau says.
Tolfree agrees: “Seconds are no longer
viewed as a niche or last-resort product. Used
appropriately, they can be a very useful and
flexible way for homeowners to access the equity
they have built up.”
Brookes believes this could signal a wider
evolution from the traditional second charge
sector towards a broader home-equity finance
market. This is where home equity lines of credit
(HELOCs), staged borrowing and other flexible
facilities may have a growing role to play.
Brookes adds: “The future conversation
therefore becomes less about ‘second charges’
as a single product category and more about
how we help customers access housing equity
appropriately for different purposes.”
"I need a second mortgage for my coffee –
it's the Costa living crisis"
The role of advice
As second charges become relevant to a broader
same time. That is why I think second charges
group of homeowners and varied funding needs,
are becoming more relevant to mainstream
the importance of whole-of-market, product-
mortgage advice.
neutral advice continues to grow.
Tolfree says: “The broker needs to compare
“The opportunity is to help homeowners
use the equity they have accumulated more
all the realistic options – further advance,
intelligently. The responsibility is ensuring
remortgage, second charge and potentially other
that we do not turn a short-term problem into
forms of borrowing – and look at the total cost,
unnecessarily expensive long-term secured debt.”
fees, term and affordability rather than simply
asking which gives the lowest monthly payment.”
The advice process may also lead a borrower
away from the product they originally requested.
Chambers says: “One recent client approached
Looking ahead, Brookes says: “I expect
the underlying demand to remain, but what
will change is the sophistication of the
market around it.
“Conventional second charges will remain
us about raising around £40,000 after funding
important, while HELOCs, flexible facilities,
home renovations on credit cards. Having
staged borrowing and specialist property
reviewed the options, we found that a further
finance point towards a broader home-equity
advance from their existing mortgage lender was
finance market.”
cheaper than a second charge.
“That is an important example of what advice
should achieve. A second charge enquiry should
not automatically become a second charge
recommendation.”
In some cases, the most suitable answer may be
not to borrow at all.
Brookes says: “A good advice business should
Lau expects second charges to remain an
important part of the market as consumer and
broker awareness continues to grow.
Tolfree similarly expects debt consolidation
and home improvements to remain significant
drivers into 2027, while affordability and good
advice remain central.
As homeowners contend with higher costs,
not measure success simply by whether a loan
unexpected life events and the growing financial
completes. The real test is whether the customer
case for staying put, second charges can provide
ends up in a better and more sustainable position
flexibility where the traditional mortgage market
as a result of the advice they have received.
does not always fit. But access to equity is not a
"That is why, for me, the product should follow
the advice, rather than the advice following
the product.”
Brookes says: “People can be asset-rich, equityrich and temporarily cashflow constrained at the
solution in itself.
Ultimately, the question is not simply whether
homeowners can access their equity, but whether
doing so will leave them in a stronger and more
sustainable position.
October 2026 | The Intermediary
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