Complete FS launches radical shakeup of charges for second charge lending

09 May 2016

Complete FS, the South Coast based packager, has launched a low cost second charge fee charging structure, which it believes will clear away one of the major barriers to brokers embracing second charge lending, namely high Master Broker fees.

Complete FS now offers a flat application fee of £199 along with the lender’s valuation fee and disbursements. There is no Master Broker Fee and the intermediary will determine the advice fee to be charged.

Under the new regulatory rules, the first and second charge processes have become very similar and Complete FS has adopted a comparable fee structure as that of the first charge market, which will ensure that brokers, who have historically been put off by high fees, will now find attractive.

To help brokers understand the secured loan market better, Complete FS is running its second roadshow of the year at Southampton Football Club on the 19th May and concentrating on the second charge market and the opportunities that are available now that there are alternatives to Master Broker charges.

According to Complete FS’ Director, Tony Salentino, excessive fee charging was one of the main reasons why advisers had been reluctant to adopt second charge loans over the remortgage alternative.

He said, “At Complete FS, we are looking to provide a much improved customer journey for secured loan borrowers, which is more transparent and does not involve exorbitant fees. The options we offer are designed to ensure that advisers have a clear choice to offer clients and also decide how much they want to take as a broker fee.”

Maeve Ward, Sales & Operations Director at Shawbrook Bank Limited, commented, “It's great to see Complete FS leading the way in education as well as addressing one of the main reasons why brokers have avoided second charges in the past, namely the fees! Now that seconds are regulated in exactly the same way as first charge mortgages and fees are allowed to be charged upfront, fees have started to come down. Complete FS is leading the way in aligning their model to that of the first charge sector. A breath of fresh air!”