Demand is increasing in the second charge market
Second charge distributor Freedom Finance has launched a refreshed proposition in response to increasing demand from intermediaries for second charge products.
Brokers will be able to access the offering through Freedom 4 Intermediaries, a specialist second charge mortgage broker that is part of Freedom Finance.
In 2023 alone, Freedom Finance has seen a three-fold increase in enquiries from intermediaries, mirroring the growth seen in the wider market in the past year, when the value of new business in the second charge mortgage sector increased 40% to surpass £1.5 billion. The number of new agreements also rose by nearly a third, or 31%, to exceed 33,000, according to the Finance & Leasing Association.
Freedom Finance noted that the impending implementation of Consumer Duty could also increase the number of people benefiting from second charge mortgages as rate rises may make remortgaging less attractive for millions of customers.
“The refresh is a key initiative for Freedom Finance and brings a focused and market-leading proposition to the intermediary market, which becomes ever more important when considering the macro-economic impacts we are currently experiencing within the UK,” Richard Sharp, managing director at Freedom Finance Mortgages, commented.
“I look forward to Freedom Finance partnering with the intermediary market and delivering fantastic financial solutions to all of our customers.”
Nick Jones (pictured), director at Freedom 4 Intermediaries, said the update to their proposition came at a “hugely exciting time” for the second charge mortgage sector.
“Tailwinds ranging from rate rises and tightened affordability in the first charge mortgage market to a growing demand for debt consolidation mean that an increasing number of intermediaries should be considering second charge mortgages for their clients,” Jones stated.
“Our service delivers excellent results for intermediaries, helping them to grow their business and aiding them to support the regulatory demands of the upcoming Consumer Duty by embracing the spirit of variety and personalisation.”
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