Broker firm FinSpace launches second charge proposition

The firm said this was in light of rising demand for second charge mortgages and aligned with its growth plans for this year. 

The firm expects demand to continue rising in 2023, due to the increased cost of living as well as the need to repay and consolidate debt. It also predicts the mortgage type will allow homeowners to complete home improvements. 

FinSpace advises on regulated and unregulated finance with a focus on bridging and development. It recently launched a property appraisal tool for developers to value their projects before committing to finance. 

Graham Beresford, managing director and co-founder of FinSpace, said the expansion into second charge mortgages was a “significant milestone”. 

He added: “As the cost of living and house prices continue to rise, we anticipate that many borrowers will be looking to their homes to help them meet and pay off costly debts. In spite of rising rates, demand and supply for second charge loans remain strong.  

“By using the value of their home as equity, after their remaining mortgage to secure a long-term, low-cost loan, borrowers can use a second charge to streamline their finances.” 

Brokers need to be up to speed on second charge

Dave Fathers, commercial director at FinSpace, said the firm hired two consultants to support its growth into the market. 

He added: “With soaring inflation and the increase of the cost of living crisis continuing to affect thousands of borrowers up and down the country, the need and value of professional mortgage advice have never been greater. Brokers who are not up to speed on second charges will certainly be at a disadvantage.  

“Customers will undoubtedly rely on expert advice more than ever. Furthermore, lenders are offering a wide range of bespoke financial solutions, which will ensure that as an industry we can all strive to deliver the best possible results for customers with additional borrowing needs.”