How to spot opportunities with regulated Second Charge mortgages

When a remortgage or an unsecured loan simply doesn't meet your client's needs - could a Second Charge mortgage be appropriate?

You already know under MCOB rules, even if you don’t have Second Charge permissions, you must as an absolute minimum – tell clients that the option exists and that it may be better for them. 

So, when can you spot scenarios for Second Charge mortgages and for which clients?

Common situations:

• Debt consolidation
• Home improvements
• Second property deposits
• Business injection

Typical clients:

• Both prime and subprime
• Self-employed
• 'Stuck' in their first charge
• Need to avoid paying an ERC, or forfeiting low-interest rates on an existing mortgage

Think they’re difficult to place? Here’s our advice on overcoming the 6 major challenges with placing Second Charge mortgages.

With rates from 3.65%, LTV up to 95% and lending criteria up to £2m – Second Charges can be used for various reasons and clients.