Customers who could benefit include interest-only borrowers, people facing early repayment charges, people benefiting from lifetime trackers or low fixed rate mortgages that would lose out by remortgaging and those looking for flexible terms for further borrowing.
V Loans said seconds are increasingly becoming suitable for landlords due to increased competition in the space from the likes of Precise, Shawbrook, Masthaven and Blemain.
The second charge market is on course to lend up to £750m this year.
Marie Grundy, managing director of V Loans, said: “Remortgaging or taking a further advance is not always in the client’s best interest and therefore it’s essential that all options are considered.
“Interest-only customers, those benefiting from lifetime trackers and low fixed rate deals or those who do not want to incur substantial early repayment charges by remortgaging, including landlords who wish to release trapped equity, could all stand to benefit from second charge finance.
“The pending alignment of regulation for first and second charge markets will deliver huge opportunities and innovation to the market allowing advisers to provide better customer outcomes. Intermediaries should seriously consider including second charges within their scope of service ahead of the regulatory changes next year.”
V Loans was acquired by Key Retirement Group in September 2014 and operates as an appointed representative of Key Retirement Solutions.
