Freedom Finance has revamped its second charge distribution through its Freedom 4 Intermediaries unit.  

The lender says the move offers brokers the chance to grow their current business “with no additional compliance or regulatory risk” through the use of its experienced team and technology-led approach.  

It adds that its pay-out time from initial contact is half the industry average.  

The business points out that so far this year, it has seen a three-fold increase in enquiries from intermediaries, mirroring growth in the wider market.  

In 2022, the value of new business in the second charge mortgage sector jumped 40% to top £1.5bn, while the number of new agreements lifted by 31% to pass 33,000, according to the Finance & Leasing Association.  

The firm adds that new Consumer Duty guidelines, which come into effect on 31 July, place greater emphasis on intermediaries to find personalised solutions that suit customers.   

It says: “This may increase the number of people who could benefit from exploring the second charge mortgage option following rapid Bank of England rate rises which for millions of customers may make remortgaging less attractive and the cost-of-living crisis, which is driving greater interest in debt consolidation.”  

Freedom 4 Intermediaries director Nick Jones, who joined the business in March, leads the development of the division.  

Jones says: “Tailwinds ranging from rate rises and tightened affordability in the first charge mortgage market to a growing demand for debt consolidation mean that an increasing number of intermediaries should be considering second charge mortgages for their clients.”  

Freedom Finance Mortgages managing director Richard Sharp adds: “The refresh is a key initiative for Freedom Finance and brings a focused and market-leading proposition to the intermediary market, which becomes ever more important when considering the macroeconomic impacts we are currently experiencing within the UK.”