Second Charge Lending
Complete FS restructures second charge fees to remove barriers for brokers
Complete FS has created a fee-charging structure for second charge loans which it said will make the finance more appealing to brokers when considering an alternative to remortaging and further advances.
The packager is offering a flat application fee of £199 along with the lender’s valuation fee and disbursements. The intermediary will determine the advice fee to be charged and there is no master broker fee.
Complete FS director Tony Salentino (pictured) said excessive fee charging was one of the main reasons advisers had been reluctant to adopt second charge loans over the remortgage alternative.
“The options we offer are designed to ensure that advisers have a clear choice to offer clients and also allow them to decide how much they want to take as a broker fee,” he said.
Complete FS is running its second roadshow of the year at Southampton Football Club on 19 May to help brokers better understand the secured loan market.
Sales and operations director at Shawbrook Bank, Maeve Ward, said: “It’s great to see Complete FS leading the way in education as well as addressing one of the main reasons why brokers have avoided second charges in the past; namely fees.
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“Now that seconds are regulated in exactly the same way as first charge mortgages, and fees are allowed to be charged upfront, fees have started to come down.”