FinSpace, a fintech-based brokerage, recently launched its second charge mortgage offering.
By offering the newly released product, the company hopes to expand its client base in the current market, which also aligns with its future growth plans for 2023.
The company is looking to offer its clients a suitable product for their circumstances, offering the most appropriate consultative approach which is a core part of secured lending.
In the past year, numerous brokerage firms have experienced a rise in second-charge enquiries. Many brokers agree that second-charge mortgages are likely to grow even more popular by the end of 2023.
Graham Beresford, managing director and co-founder of FinSpace, said: “The expansion into second-charge mortgages is a significant milestone; I am delighted to announce it.
“As the cost-of-living and house prices continue to rise, we anticipate that many borrowers will be looking to their homes to help them meet and pay off costly debts. In spite of rising rates, demand and supply for second-charge loans remain strong.”
He added: “According to the Finance & Leasing Association’s data, the cost-of-living crisis will only deteriorate throughout 2023, and as living costs rise, customers are more likely to end up in debt or increase their debt, as well as struggle with monthly repayments.
“A second-charge mortgage can be helpful in this situation. By using the value of their home as equity, after their remaining mortgage to secure a long-term, low-cost loan, borrowers can use a second charge to streamline their finances”.
Dave Fathers, commercial director, added: “To support our growth plans, we have hired two new consultants to focus solely on the second-charge market.
“The volume of second charge enquiries has quadrupled over the past year, increasing by 45% up to £1.71bn by the end of 2022.
“The value of the new second charge business secured in October 2022 increased by 31% in the same period a year before. £143m of lending was carried out across 3,009 new agreements.”
He continued: “With the soaring inflation and the increase of the cost-of-living crisis continuing to affect thousands of borrowers up and down the country, the need and value of professional mortgage advice have never been greater.
“Brokers who are not up to speed on second charges will certainly be at a disadvantage. Customers will undoubtedly rely on expert advice more than ever.
“Furthermore, lenders are offering a wide range of bespoke financial solutions, which will ensure that as an industry we can all strive to deliver the best possible results for customers with additional borrowing needs”.
