Second Charge Mortgage Broker
Get a second charge mortgage with a market leading 5.5% broker fee – capped at £2,195. Get the best deal with ABC Finance.
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If you’re a homeowner looking for ways to access finance fast, you may have considered a second charge mortgage, also called a second mortgage or a homeowner loan.
These fast secured loans are a great way to release capital from your property for any purpose and are highly flexible.
Homeowners often take second mortgages to fund:
- Home improvements
- Debt consolidation
- Equity access to purchase another property
- Charge avoidance to the first mortgage, such as an early repayment fee.
However, second charge mortgages are specialist lending products, and most lenders only work through second charge mortgage brokers.
In this article, we’ll look at the role of a second charge mortgage broker, the benefits of using one, and the things worth considering before choosing a broker.
What is a second charge mortgage?
A second charge mortgage is also called a homeowner loan, and it’s a way to release equity from your property, without needing to adjust your first charge loan.
Key features of second charge mortgages include:
- The possibility of borrowing more than a secured loan would allow, and in less time.
- It leaves your primary mortgage untouched, which is ideal if you’re on a good rate, but the lender won’t let you borrow more on the deal.
- Secured borrowing, which means the second charge is placed against your property. Your property may be repossessed if you don’t keep up with your repayments.
In the specialist market, many second-charge loans are only available via brokers, not on the open market.
Essential considerations for second charge mortgages
Homeowner loans are specialist financial products, and applicants must be clear about their features. A mortgage broker such as ABC Finance will explain the ins and outs of your chosen finance in detail and answer all questions.
Your broker will also offer handy tools such as a second charge mortgage calculator to explain the costs involved.
The key things to remember about second charge mortgages are:
You may need permission from your existing mortgage lender to take out a second charge mortgage. However, in some circumstances, asking the question will prompt your first lender to offer you a remortgage at an attractive rate. Pursuing this path first is worthwhile, especially if you avoid early repayment charges and other fees.
2nd charge mortgages are secured against your property. This means it’s at risk if you don’t meet repayments.
2nd charge mortgages are usually more expensive than first charge mortgages, as they have higher interest rates. This reflects the greater level of risk for the lender,
Bear in mind that once you take out a 2nd charge mortgage, or homeowner loan, you’ll need to meet the cost and administration of two mortgage payments every month, in full.
What Does a Second Charge Mortgage Broker Do?
A second charge mortgage broker acts as an intermediary when you’re looking for a second mortgage. The second charge broker will help to make the entire process as quick and efficient as possible, and provide valuable advice, guidance, and administrative support throughout.
These are the things the second charge broker will do when you decide a second charge mortgage could be right for you, and allow you to borrow extra secured funds against your property.
A full needs assessment
The second charge mortgage broker will evaluate your financial situation and borrowing needs and assess the equity in your mortgage.
With this financial picture in place, the broker can determine whether a second-charge mortgage is the best option to meet your requirements or whether a different financial product (such as a secured loan) might be better.
Options comparison
Second charge brokers help you make the right decision about your finances. So they will explain the pros and cons of a second charge mortgage, detail other borrowing methods (such as a first charge remortgage) and explain the costs and fees involved.
They will also use a second charge mortgage calculator to provide a typical fee schedule and clarify the financial commitments involved with different types of lending. This gives you a clear picture and supports confident decision-making.
Market search
Second charge mortgage brokers have access to a larger panel of lenders than customers on the open market. The broker will search the market for the best second charge mortgage rates for your needs.
At ABC Finance, we work with a trusted panel of reputable lenders and do our own due diligence to ensure we only recommend trustworthy lenders to our clients.
Application support
One of the most significant issues with second charge mortgages is application errors. When you choose a second charge mortgage broker, the process is faster and easier, as they handle the paperwork and guide it to keep everything moving swiftly.
They will check paperwork for accuracy and completeness, answer questions and facilitate communication between the lender, client and conveyancer. The result? A faster second charge mortgage.
Lender negotiation
Second charge mortgage brokers negotiate with lenders to secure their clients’ best possible fees and rates. This can make a big difference to the overall cost of your loan.
Support and guidance
The broker will also ensure that the application process is straightforward and transparent. This is important as some of the terms and conditions associated with financial products can be unclear.
With a big-ticket loan such as a mortgage (of any kind), it’s vital to know precisely what you’re taking out and how it will work. At ABC Finance, we are always available to answer our customers’ needs and explain everything clearly, helpfully and without jargon!
Read more –  How To Get A Second Charge Mortgage or How to Get a Fast Second Charge Mortgage.
Five key benefits of using ABC Finance as your second charge mortgage broker
ABC Finance can improve your access to finance in these key ways:
1. Market leading fees
At ABC Finance, we charge a market leading 5.5% broker fee, capped at £2,195. Our rivals charge much higher fees, with many charging 12.5% of the amount you borrow, capped at £5,000. This, along with our excellent service is why we win so many awards for our second charge mortgage offering.
2. Direct to lender
We work with specialist lenders that don’t always advertise directly to customers. Some of the best second charge lenders only work through the broker market. ABC Finance can get you deals you’ll never see in a direct search.
3. Expert advice
We provide no-fee, expert finance tailored to your needs and circumstances. What’s more, we are wholly committed to transparency and work hard to put our clients’ needs before our own.
When you choose ABC Finance, you know you are choosing a trusted, reputable broker that works to the highest industry standards.
4. Faster access
We provide quicker access to a second charge mortgage or secured loan. We are fast, efficient, and slick, which saves our clients time and money. We know that many of our clients are considering a second mortgage for fast finance, so we’re here to make it happen!
5. More approvals
We improve your approval chances because we know which lenders suit different borrower profiles, including bad credit and self-employed applicants.
We also pre-qualify clients before submitting applications to limit the risk of non-approval and a negative mark on your credit record.
6. Quality, Regulated Services
At ABC Finance, we are FCA-regulated, which means we only recommend suitable and trustworthy products. This protects your consumer rights at all times.
We take our standards one step further, as we’re voluntary members of FIBA (The Financial Intermediary and Broker Association), which exists to raise standards further in the industry.
What should clients know about broker fees?
All financial brokers charge a fee for their services. At ABC Finance, we are committed to offering excellent value. We offer a very low broker fee, at 5.5% of the total loan amount.
This compares to an industry standard of 12.5%. We can offer this because we run a slick, efficient business that eliminates waste. We also have a high level of business and repeat custom from happy customers, so it makes sense that we keep our broker fees competitive!
We are also confident that our service can save our customers significant money, compared to going alone. We are excellent value for money, especially as we offer a premium service.
Keep reading – How to get a second charge mortgage to raise capital against your home equity or second charge mortgage calculator.
What are the risks of going it alone?
Some customers arrange their products directly with a chosen lender for first-charge or standard home buyer mortgages. This mortgage market is relatively simple and manageable, and lenders are happy to deal with customers directly.
However, second charge mortgages are complex, which is why many lenders do not deal directly with clients on the open market but instead only work with second charge mortgage brokers.
If you do decide to ‘go it alone,’ there’s a risk that you won’t secure the best deal for your needs. You may also find it challenging to establish your eligibility and prove affordability. There’s a risk of making application errors and seeing that your loan is either denied or approved later than you need.
A trusted broker such as ABC Finance always makes sense for most customers. Even with a broker fee factored in, the ultimate cost is usually still more attractive than attempting to secure a homeowner loan without this brokerage support.
Contact ABC Finance today
ABC Finance is a multi-award-winning, family-run financial broker with FCA accreditation and voluntary FIBA membership. We’re committed to serving our clients’ interests before our own, and we’re highly experienced in the market, with over 25 years of happy clients to our name!
Why not read our reviews and then give our friendly team a call? We offer brokerage services for various products, including second charge mortgages, secured loans, bridging finance, and buy-to-let mortgages.
Our very high level of repeat business is a testament to the quality of our service. Contact us today to find out more and secure the finance you need!
