Research by Brightstar Financial discovered three quarters (74%) of brokers did not tell their clients they offered second charge mortgages, leaving only a quarter who were flagging up this option.

The study by the specialist distributor, which questioned over 1,000 intermediaries, found the most common reason for not talking about second charges mortgages was due to the fact they did not have enough time. Many also said they simply forgot.

Now Brightstar is urging brokers to consider second charge when speaking with clients because it was an area of the market set for growth.

Michelle Westley, head of marketing at Brightstar Financial, said: “It’s now more than four years since second charge mortgage lending came under the same umbrella of regulation as the first charge market and brokers have been required to consider second charges alongside other options for capital raising.

“So, it’s astounding that so many brokers are still not having conversations about second charge lending with their clients.

“The good news is that this means three quarters of brokers now have a great opportunity to boost their business levels as we move into next year.

“It’s widely anticipated that the purchase market will slow down in 2021 with the removal of Help to Buy and the end of the Stamp Duty holiday, but the second charge mortgage market is set for growth as demand increases from customers who want to release capital from their home.

“Now is a great time for brokers who don’t have experience in second charge lending to partner with a specialist in this area so that they can hit the ground running, safe in the knowledge that they can access sector-specific expertise for their clients.”

Danny Waters, CEO at specialist lending supplier, Enra Group, said borrowing had become ‘increasingly complex’ so it was ‘disappointing’ such a large proportion of advisers disregarding second mortgages.

He added: “It is understandable that the challenges presented by current service levels within the first charge market means mortgage intermediaries are likely to be experiencing increased pressure around operational capacity and resource.

“However the option to outsource second charge advice and processing with specialist broker firms such as Brightstar, mean that second charges can and should still be considered alongside remortgage options to determine the best possible consumer outcome.”