Loans Warehouse has issued a rallying call for the second charge market to help ensure homeowners who have secured low fixed rate mortgages are able to access property wealth.
Matt Tristram (pictured), director and co-founder of Loans Warehouse, said second charge products will now be a key tool for brokers following the increase in mortgage rates.
With many homeowners currently sitting on fixed rate mortgage terms that are now considerably cheaper than remortgage opportunities Tristram said seconds could prove to be a cheaper alternative to raising funds.
And with fixed mortgage rates now moving towards 6% he added that brokers needed to make sure they were fully aware of the options seconds provided for homeowners.
Tristram said: “Over the past week or so we have seen mortgage rates increase to a level we could only have imagined just a month ago.
“For those lucky enough to have secured fixed terms before the repricing of the market seconds can be key to unlocking finance while ensuring they can stay on preferable rates.
“For brokers who are not up to speed in seconds we would advise them to find a packager partner who can add this tool to their armoury.
“As a market it is all of our responsibility to ensure that we have the flexible products to help borrowers in this difficult time.”
Even before the current economic situation, second charge products have been seeing a significant resurgence.
Finance and Leasing Association figures revealed a 29% increase in the number of agreements in July 2022.
These figures come on the back of increasing volumes since the Covid-19 pandemic.
