With the vast majority of borrowers locked into fixed rates, secured loans can offer a win for clients needing capital and for advisers looking to add value.
The mortgage market narrative has recently focused heavily on shifting rates and hesitant buyers. But dig into the data, and a much more encouraging story emerges for proactive advisers.
There is a deep well of overlooked activity sitting right inside your existing client bank, and it revolves around capital raising. According to FCA data for the first quarter of this year, a massive 91% of outstanding mortgage balances are currently on a fixed rate. While it is tempting to view this as a dormant segment of the market, homeowners haven't stopped needing capital.
Life continues regardless of the base rate. Clients still want to build extensions, fund education or cover a large one-off cost. The demand for capital is there; it is the cost and availability of the traditional solutions that has changed.
When a client needs to raise capital on their property, we essentially have three avenues to explore. Right now, two of them face headwinds, creating a prime opportunity to learn about and explore the third.
The capital raising toolkit
1. The remortgage
Historically the default choice, a full remortgage makes perfect sense when rates are falling. Today, the math’s is entirely different. If a client wants to raise £40,000 but has an existing £250,000 balance locked into a fix below 3%, remortgaging means moving that entire £250,000 plus £40,000 onto today's higher rates, while also triggering an early repayment charge (ERC). It is an expensive way to access funds. Unsurprisingly, borrowers are avoiding a full remortgage; UK Finance notes that 81% of refinancing activity in Q2 came via product transfers, moving to a current rate with the existing lender without the cost and effort of remortgaging.
2. The further advance
A further advance with the existing lender was once the natural fallback. However, lender appetite and criteria have tightened. Meanwhile, second charge lending grew 27% by value in the year to June 2026 (FLA).
3. The second charge mortgage
Underused and undervalued. This is where the modern advice opportunity lies. For certain clients, a secured loan is built for this exact economic climate. It prices the new borrowing on its own terms and ring fences the existing mortgage, leaving that valuable low-rate first charge and its ERC completely untouched.
A catalyst for client retention
Second charge loans have historically sat on the periphery of the mainstream mortgage conversation, with clients often going directly to consumer platforms or specialist brokers to find them (scary but true). Why? Because they don't know you can help.
Bringing this conversation in house is a massive positive for your business and for your client, as you can help them short and long term.
By actively presenting second charge loans alongside remortgages and further advances, you position yourself as a holistic problem solver. When you save a client from unnecessarily breaking a highly favourable fixed rate just to fund a loft conversion, you secure their loyalty for life. Most importantly, you can plan with and for them.
Many networks require advisers to refer second charge cases to a specialist referral partner.
Rather than seeing this as handing a client away, view it as an extension of your service.
Partnering with a reputable specialist ensures your client gets expert, regulated advice on the second charge while you maintain the primary relationship, protect your trail and share in the revenue.
Under the Consumer Duty, our mandate is to enable clients to pursue their financial goals, including the goals that don't fit neatly into a standard remortgage. Embracing secured loans isn't just a regulatory tick box; it is a proactive strategy to deliver outstanding outcomes, solve complex client needs and drive growth in a market that is far more active than the headlines suggest.
