The lender says that, particularly in the current market, brokers should be weighing up second charge deals alongside mainstream products when clients are looking to raise money by remortgaging or taking out a further advance.

With average two, three and five-year fixed rates at current levels, borrowers who raise capital by remortgaging could be stuck on high rates for several years due to early repayment charges.

In some cases, taking a smaller second-charge loan to raise capital rather than remortgaging the entire debt could give borrowers more flexibility to refinance in the future and potentially save them money in the long run, Loans Warehouse argues.

It says secured loans, or second charge mortgages, are increasingly being used as a way to raise capital without disturbing an existing mortgage.

This allows borrowers to access additional funds while retaining their current rate and avoid committing to a new long-term mortgage.

Co-founder Matt Tristram says: “The challenge for brokers right now is that nobody has a clear view on where rates are heading over the next three months, let alone 12 to 24 months. 

“In that environment, locking clients into long-term mortgage products without considering alternative options could prove short-sighted.

“We’re seeing a growing shift in how capital is being raised, with more borrowers actively looking for flexibility rather than committing to a full remortgage.”

Tristam adds: “In a stable market, the lowest rate is often the priority.

“But in today’s market, flexibility is becoming just as important, if not more so.”