How I switched my mortgage advisers on to second charges – Paul Flavin

by: Paul Flavin, managing director, Zing Mortgage
  • 04/05/2017
  • 0
How I switched my mortgage advisers on to second charges – Paul Flavin
After initial resistance from his mortgage advisers towards second charges, partly around fees, they now embrace this type of funding. Paul Flavin, MD of Zing Mortgages, explains how he switched his firm on to seconds.

With 14 mortgage advisers, Zing is definitely not under the radar, so it’s even more important that we conform when new legislation comes in, as well as being proactive in searching for sales opportunities. You can’t avoid these rulings so it is better to make the most of them.

Steer clear of undermining your adviser

The first step is to encourage an in-depth understanding of when a second charge would be the best option for a client. Demanding that an experienced adviser must produce a second charge quote for every remortgage case where fund raising is involved can belittle their ability.

If a client has sufficient income, equity and good credit, there is no need to waste time comparing the cost of remaining with the current lender’s SVR and raising a second charge at, say 4.5%, when you’re fully aware that switching the whole amount to a two-year fixed first charge with minimal fees and a far lower rate is the correct advice.

Training advisers to be able to distinguish this empowers them, giving them the confidence to make the right recommendation.

Pair up with a seconds broker who offers tangible value

The second factor in beating those initial adviser objections is pairing with a company that can deliver a quality of customer service that you’d be happy to put your name to.


Trying to edge round the fee issue is pointless,

not to mention slippery’


Any fee charged is only an obstacle in the absence of value. Once a client understands why a second charge would work best for them and what the fees actually cover, they are usually happy to proceed. Trying to edge round the fee issue is pointless, not to mention slippery. Bring it up at the start of the conversation then explain why this is the best option.

When the client has bought in, hand the case over then sit back and enjoy the rewards, confident that your proven second charge broker can deliver as promised.

Book in your follow-up review

It is this confidence in our chosen second charge broker, combined with effective adviser training, that has seen a massive increase in the number of second charge loans being put forward.

However, we always book follow-up reviews with our customers to ensure that we offer to remortgage away from the second charge as soon as circumstances allow. Conveying that a second charge loan is often a short-term solution while other matters are resolved means that you are offering your clients a full and transparent service.

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