The Advantage of Consulting a Second Charge Mortgage Advisor
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 advisor 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 advisor 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 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
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 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 Revolution Finance Brokers at any time.
