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Second Charge Mortgage Brokers
The second charge mortgage market can be complex, with various aspects to bear in mind – from selecting the right second charge mortgage lenders to assessing your eligibility and ensuring your borrowing is sufficient to cover the outgoings you have planned.
Borrowers may also find that the policies and criteria between each second charge mortgage lender vary greatly, and a second charge mortgage broker can be invaluable in providing independent advice, and suggesting the best-suited lender that is most likely to approve the application.
Today Revolution Finance Brokers, and our specialist and our specialist second charge mortgage broker team, explain the benefits of working with a skilled, whole-of-market second charge mortgage broker before you make any long-term financial decisions.
What Does a Second Charge Mortgage Broker Do?
Our role as your second charge mortgage broker is to provide transparent guidance as you navigate the second charge mortgage market – we assist clients with the following:
- Comparing the pros and cons of a second charge mortgage vs remortgage product to ensure they have clarity about the costs and fees attached.
- Submitting complete, accurate applications to their selected second charge mortgage lender and following through to ensure it is processed swiftly.
- Negotiating with second charge mortgage lenders on behalf of our clients to secure the best possible interest rates and product fees.
- Assessing their circumstances to recommend the second charge mortgage lender that is best suited to their borrowing requirements.
The reduction in interest rates we often achieve means that working with a second charge mortgage broker is very likely to mean your chances of approval are improved, and the overall cost of the product is reduced.
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The Advantage of Consulting a Second Charge Mortgage Broker
Like all mortgage products, there are multiple second charge mortgage lenders with different rates, terms, conditions, lending policies and charges. Unfortunately, some of the most competitive lenders do not advertise their products online or use online comparison sites.
Instead, a niche second charge mortgage lender may only accept applications via their trusted networks of independent second charge mortgage broker teams, which means that even the best lender available online may not provide the most favourable deal.
It is also important to establish the second charge mortgage definition and confirm whether this is the right way forward. Some homeowners find that another type of secured loan is more appropriate or that the amount they wish to borrow is below the threshold most second charge mortgage lenders will consider.
A second charge mortgage broker is even more essential if you have any non-standard circumstances attached to your application, since a high street lender or mainstream second charge mortgage lender will rarely consider applicants who do not fit within their criteria.
For example, you may need a second charge mortgage broker to identify suitable products and lenders if you have adverse credit, have an unusual property, are approaching retirement, or need to borrow a large value in proportion to the equity you own in your home, above the 80% to 85% maximum usually offered by a second charge mortgage lender.
Costs of Hiring a Second Charge Mortgage Broker
The first area to address when considering costs is that, although the terms broker and advisor can and are used interchangeably, they can mean two different things. For example, a second charge mortgage advisor at a bank can only advise on the products available from the lender they are employed by.
In contrast, an independent second charge mortgage broker with whole-of-market status has access to thousands of products and the autonomy to recommend whichever second charge mortgage lenders or deals they feel are in your best interests.
Depending on the complexity of the application, most deals are based on a percentage or fee structure very similar to what you might expect when applying for a first charge mortgage. The return is the expertise of a professional second charge mortgage broker well versed in the second charge mortgage market who can often save you thousands in repayment costs by negotiating directly with the second charge mortgage lender.
Revolution always advises on the anticipated costs before we agree to act as your second charge mortgage broker for the avoidance of any doubt and to verify you are happy to proceed.
Applying for a Second Charge Mortgage Through a Second Charge Mortgage Broker
As your second charge mortgage broker we assist with each phase, from compiling documents and records to submit to the second charge mortgage lender with your application to finalising the deal. If you are keen to complete the transaction as soon as possible, you can follow the below steps.
- Preparing paperwork – the second charge mortgage lender will wish to see documents such as three months of payslips, copies of your bank statements, and photo ID.
- Accessing your first charge mortgage details – second charge mortgage lenders will also need to review the details of your current mortgage. You will usually need to contact the original lender and go through a formal process to gain their consent.
A second charge mortgage broker can help, advising on the information you need and reviewing the application before they send it to the second charge mortgage lender to clear up any queries or highlight questions they expect the lender to raise.
Finding an Experienced Second Charge Mortgage Broker
We often work with clients who recognise that a second charge mortgage broker could expedite their application, enhance their prospects and secure a more competitive deal but are unsure how to go about hiring a second charge mortgage broker with the relevant knowledge.
If you need any assistance with choosing second charge mortgage lenders, working out how much you may be able to borrow, comparing deals, or even selecting between a second charge mortgage vs remortgage, please get in touch with the Revolution Finance Brokers second charge mortgage broker team at any time.
Exact savings vary considerably between applications, but having a skilled second charge mortgage broker negotiate with your choice of second charge mortgage lender can make a significant difference to both the outcome of the application and the rates you are charged.
For example, if you would like to use a second charge mortgage lender and fall slightly outside their eligibility criteria, we can liaise with them as your second charge mortgage broker and provide background information and context to improve the likelihood of receiving approval.
We also find that, in almost every scenario, the savings made by reducing the application costs or products fees levied by second charge mortgage lenders, and even nominal reductions in the interest rate can save huge amounts over the duration of the repayments, far in excess of the cost of hiring a second charge mortgage broker.
The right lender for you requires an assessment of your circumstances and borrowing needs by a second charge mortgage broker. One borrower looking for a small value but with an adverse credit history may find that a certain second charge mortgage lender is the ideal choice because they have a flexible, case-by-case approach to bad credit.
However, the same lender may not be a good option for a different applicant looking to borrow a much higher amount and with a good credit history because the most appropriate second charge mortgage lender, in this case, may be one with the lowest interest rate.
Therefore, your second charge mortgage broker consults with you beforehand, evaluates the nature of the application, and recommends second charge mortgage lenders from there.
An independent second charge mortgage advisor may offer many of the same services as a broker but, in many cases, works for a bank or financial institution and can provide information solely about the products they offer. In contrast, a second charge mortgage broker who is autonomous can make any recommendations they wish, giving you a broader choice and more personalised guidance.
Second charge mortgage lenders offer mortgage products secured against the equity in your home. The difference between a first charge mortgage is that your current borrowing remains as-is, and you have two mortgages, sometimes with different lenders, to repay.
Homeowners commonly decide to work with a second charge mortgage broker because they cannot extend their original mortgage, are locked into a competitive interest rate they would sacrifice by remortgaging or would incur steep early repayment charges if they tried to remortgage.
Second charge mortgage lenders offering residential lending are regulated by the FCA and must abide by all the rules around product information. For example, all second charge mortgage lenders will assess applicants for affordability to ensure they are not lending irresponsibly.
Remortgaging is normally cheaper and easier than applying to a second charge mortgage lender. Still, as we've outlined above, there are many scenarios where this is not suitable or would be a costly move.
The typical reason is that the original mortgage has a great interest rate and is in a fixed-term deal – remortgaging would mean losing low-interest rates and paying early exit fees, which could cost a prohibitively high amount in excess of the cost of applying to a second charge mortgage lender. If you need more tailored advice, our second charge mortgage broker team is happy to help.
In some cases, a second charge mortgage lender could reject an application for a range of reasons – such as having poor credit, failing to pass affordability assessments, or needing to borrow a higher amount than the lender can offer based on the equity in the property. A second charge mortgage broker can avoid these delays and help you make informed decisions from day one.
As specialist mortgage brokers for a huge variety of applicants, the whole-of-market consultants at Revolution provide access to an exceptional range of lenders, products and mortgage deals. That means you get the advantage of professional negotiation and broker-exclusives through an established lending network to ensure we always find you the most competitive mortgage available.
The content included in our articles, blogs, web pages and news publications is based on information accurate at the time of writing. Note that policies and criteria can change regularly throughout the UK mortgage lending market, and it remains essential to contact the consultation team to receive up to date guidance. The information included on the Revolution Brokers site is not bespoke to any circumstances or individual application scenarios and therefore is not intended to be used as financial advice. The content we share is designed to be informative and helpful but cannot be relied upon to provide individual advice relevant to your mortgage requirements. All Revolution team members are fully qualified, trained and experienced to provide mortgage advice of an independent nature.
We collaborate with lenders and providers who are regulated, authorised and registered with the Financial Conduct Authority (FCA). Should you require specific mortgage borrowing types, some products such as buy to let mortgages may not be FCA regulated. The Revolution team can provide further information about regulated and unregulated lending as required. Please remember that a mortgage is a debt which is secured against your home or property. Your home can be at risk of repossession if you do not keep up with the repayments or encounter any other difficulties in managing your mortgage borrowing responsibly. This also applies to any remortgage or home loan secured against your property, including equity release products.