Help & Support

A second charge mortgage is also often referred to as a secured loan. Technically a first charge mortgage is a secured loan so a second charge mortgage is the recognised term to use. A second charge mortgage is money that you borrow that is secured against an asset you own, usually your home. The interest rates tend to be higher than a mortgage but cheaper than an unsecured personal loan. It is important to understand how secured loans work and what could happen if you can't make the payments.
There are different names for secured loans, including:
  • Second mortgages or second charge mortgages
  • Home equity or homeowner loans
  • Debt consolidation loans (although not all debt consolidation loans are secured)
When:
  • Your client is already on a competitive mortgage rate
  • Your client is tied into their mortgage with heavy redemption penalties
  • Your client has an interest only mortgage
  • Your client needs a larger sum over a longer term to bring the monthly cost down
  • Your client needs funds quickly with no upfront fees to pay
  • Your client's credit status has changed since their last mortgage application
  • Your client needs early settlement flexibility
  • Your client needs to raise capital for a non-traditional purpose
  • Your client is unable to obtain a re-mortgage or further advance
  • Soft credit searches at quotation stage is important
Second charge mortgages currently have to be applied for through a Master Broker who will take your Client through the application process.
From 21st March 2016, second charge mortgages become regulated in accordance with the Financial Conduct Authority (FCA). Advisers with the appropriate permissions can deal with the advice process themselves and will then place the loan through a Master Broker. Alternatively, Advisers without such permissions will be required to refer their Client to a Master Broker. The Master Broker will then provide the advice (as they have the permissions required) and also manage the loans process.
It is unusual for a second charge lender to deal with an Adviser directly and not go through a Master Broker.
A Master Broker is a bit like a packager. They have been given authority by the lender to sell their products on their behalf and will contact the customer, gather the information required and be the point of contact for the loan application.
Refer directly and easily to Fluent Money, the UK's largest second charge Master Broker
The level of commission is a matter between an Adviser (acting as the introducer) and the Master Broker. It varies but is currently in the region of 5% of the loan subject to a maximum of £2,500. For a second charge mortgage of £30,000, this currently would be circa £1,500.
LoansBrain is Mortgage Brain's whole of market second charge sourcing website.
It enables an Adviser to source, based on Client's details, a range of products from Second Charge lenders. You can then compare the products in the Scheme List, and then forward the Client's details as a lead to the Master Broker, who will then contact the Client on your behalf and manage the application process. Alternatively you can advise your client on the products available, and then submit their information to the Master Broker who will then manage the application process.
Watch Roger Crocker, Sales and Marketing Director at Mortgage Brain, introduce LoansBrain in this video.
There is no need to register to use LoansBrain and it is provided free of charge.
LoansBrain is standalone and web based, offered to Advisers to search and source second charge mortgages for their clients across the whole of the market. Unlike sourcing systems such as MortgageBrain Classic and MortgageBrain Anywhere which provide full sourcing and compliance capability, and also integrate with MTE to submit applications direct to lenders, LoansBrain is simply a sourcing tool. The current application route for second charge mortgages is through a Master Broker who is responsible for providing clients with the required compliance documentation if they choose to proceed with the second charge mortgage. Therefore, LoansBrain is provided as a referral system and is not integrated into any other third party software, nor does it carry the ability to produce illustrations or compliance documentation hence it is offered free of charge.
You can either carry out a quick or detailed second charge product source.
Click on either the quick or detailed source hexagon on the home page or choose from the menu, then enter your client's details into the required boxes and click the button to source products based on the criteria you entered. A scheme list will then display information on all products that may be available to your client. You can tick the box against products to compare them and further product details can be displayed by clicking the details button on the right hand side.
You can carry out a 'quick' source and then decide to proceed with a 'detailed' source by clicking the 'Switch to Detailed Source' button on the quick source page. The customer details will be transferred across from one page to another, saving you time.
You can run another quick source query by entering alternative client details in the relevant boxes and clicking the 'Re-calculate Quick Source' button which will have changed colour.
When you and your client have agreed on a product, the client data can be entered into the enquiry form which is then sent securely to the Master Broker who will contact your Client and process the case for you.
When an enquiry has been submitted then you will confirmation of the details sent to the Master Broker via email for your records.
Fluent Money are the Master Broker on LoansBrain. They are the UK's leading whole of market second charge finance broker and arrange over 20% of all second charge mortgages in the UK. Having built their business on excellent customer service, they will provide the most appropriate product to your client and are known for their high quality communication. Their Directors have over 70 years' combined experience in the finance industry and that experience has been used to build their team of professionals who can get you access to the products you want, as quickly as possible.
You can contact Fluent Money by calling their Broker team on 01204 477600 or emailing loansbrain@fluentmoney.co.uk.
No Client information is stored on the website and any customer details submitted on an enquiry form are passed securely to the Master Broker.
Yes, any Adviser who has a current FCA number can use LoansBrain.
Yes, there are no restrictions in place on who can use LoansBrain but if you have any concerns or are in doubt, please consult your Network.
You'll need to ask your Network what provisions they have made for second charge sourcing.
LoansBrain is a sourcing tool which will help you to identify whether a second charge mortgage is a sensible option for your client and then you can pass on the relevant details to Fluent Money. Alternatively you can continue as you do now.
Yes, LoansBrain is accessible from MortgageBrain Classic (desktop sourcing) and MortgageBrain Anywhere (online sourcing) by clicking 'Secured Loan' tab in both systems. It is also accessible from the Key (CRM and back office system).
The time to display products will depend on your broadband or Wi-Fi connection. If you are using a mobile 3G connection, it will be slightly slower than if using Wi-Fi or Broadband.
LoansBrain is optimised to work on a tablet, iPad or iPad Mini. It may run on smartphones with a smaller screen size but this is not recommended.
The minimum internet Browser versions supported are:
  • Internet Explorer 9 and above
  • Chrome 30 and above
  • Firefox 24 and above
  • Safari 6 and above
  • Mozilla 11
If you would like to contact Fluent Money, either call them on 01204 477 600 or email brokerteam@fluentmoney.co.uk.
Broker team contact hours: Monday - Thursday 9.00am to 5.30pm, Friday 9.00m to 5.00pm
Adviser operating hours: Monday - Thursday 9.00am to 8pm, Friday 9.00am - 5.00pm, and Saturday 9.30am to 2.30pm
Or please contact the Mortgage Brain Customer Support helpdesk on 0208 665 3200 or email loansbrain@mortgage-brain.co.uk.
Customer Service Team contact hours: Monday - Friday 8.30am to 5.30pm, except Wednesday 10.00am to 5.30pm