Second Charge Mortgage Brokers

It’s likely you’ve grasped that a second charge mortgage broker would save you time, money and effort in securing the best deal. But let’s put the deal aside for now – how about the process of finding the right broker in the first place?

Meeting the right expert could make all the difference to your application and ultimately how much you pay, and potentially save, in the long-term. Here we outline how enlisting a second charge mortgage broker works, what they’ll actually do and how much it costs.

Once you’ve read through the information below, get in touch and we can arrange for an advisor we work with, who has experience in this area, to contact you directly.

How a second charge mortgage broker can help you

Taking out a second charge loan can be a minefield to navigate for homeowners on their own. It’s not obvious who is willing to lend, who they will lend to, and the application process can be tricky to understand.

Second charge mortgage brokers specialise in this kind of secured lending, and can unlock access to the entire market for their clients. They will always look at your situation holistically and provide a bespoke service that’s tailored to you.

As their role is to work as a vital communication link between the applicant, various other third party providers and the lender, they work solely on your behalf and your best interests, not the lender’s, so can make all the difference in what deal, rates and terms you end up with, as well as how well your application is received.

They will compare second charge deals across the market and identify how these compare with alternative loans in your situation, such as remortgaging. They will offer you individual advice on these products and help you put your paperwork together for an application.

Some banks demand that second charge mortgage applications go via an independent broker, which means finding one might be compulsory anyway.

Working with a second charge mortgage broker: Step by step guide

Getting a second charge mortgage can prove to be a trickier process than for your original home loan. By following these simple steps, you’ll be able to find the right broker who can help improve your chances of success.

Step 1: Gather everything you need to present your case.

• How much is your house worth?
• How much do you want to borrow?
• What is your income?
• What is your financial health and expenditure?

Bring together as much information as possible, so everything is organised before you speak to a broker.

Step 2: Find a broker

Rather than contacting brokers one-by-one, use an established matching service, such as ours, which works with a comprehensive network of brokers.

This way you’ll be able to speak with a specialist straight away who focuses on helping people with second charge mortgages, rather than one who offers more general advice across the market.

Step 3: Identify the right lender

Have an initial meeting with your broker so you can establish what your situation is, what you’re looking for and how you’d like them to help you.

Once they have all the background, the broker can draw upon their industry knowledge and contacts to search for the best deals to suit you.

What broker fees to expect

This is usually an agreed fee based on a percentage of the amount you want to borrow (typically between 0.3%-1%). However, some advisors charge according to how complex the case is, while others might have a fixed fee (usually up to £999).

Some have a success-only fee, while others may promise to refund everything if they are unsuccessful. Remember, the lender may also charge various fees.

It’s a good idea to take up a free consultation before you commit to any one broker, and it’s worth calculating the costs into your overall spend, while bearing in mind you might be making bigger savings in your deal by working with one.

How brokers help in irregular circumstances

A broker can make getting a second charge mortgage much more straightforward, but there can be a number of potential hurdles in the application process. Here are some scenarios that a good advisor can help you through for a successful outcome:

Bad credit history

If you’ve been turned down before due to a bad credit report, a broker will be able to talk you through how to secure a second charge mortgage and what they will do to help. This is likely to be practical guidance, such as optimising your credit report, and deeper investigations into finding a lender who would be willing to work with you.

Non-standard homes

If your home is classed as a non-standard construction property, it is especially crucial to have the right broker on side. That’s because they understand the issues lenders have and which ones are willing to broaden their provisions.

Self-employed applicants

If you’re self-employed you’ll already know that mortgages and finance in general is trickier to come by. However, according to the Office of National Statistics (ONS), there are now 4.53 million self-employed people in the UK at the last count, so lenders must begin to be more flexible in this area.

An experienced broker will know where those current lenders are, and will appreciate your income patterns and how to make it go further.

Mortgage brokers for buy-to-let

There are many facets that come with buy-to-let mortgages that go beyond simply affordability, and second charge loans are no exception. A broker will be able to help you navigate your application and point you in the right direction.

Get matched with a second charge mortgage broker

Understanding what a broker does and how one would work for you should ease the pressure and stress of going through a complex second charge application process. Your next steps are simple – to pick up the phone and find the right advisor.

The brokers we work with excel in their field, being sought after for their expertise, reliability, honesty and customer support.

They want to help people to find the best deals that are out there but not always attainable to everyone, and we help to get that hand-picked match just right.

Contact us on 0808 189 0463 or make an enquiry online for a free, no-obligation initial consultation to find out more today.