The Loans Engine has scrapped master broker fee for second charges and replaced it with a flat fee.

It will now charge a £295 application fee payable once the customer decides to proceed with the loan and after the lender’s DIP is confirmed.

Steve Harness, commercial director at The Loans Engine, said: “Many intermediaries tell us they see little demand for seconds, but they will have clients looking to capital raise who are on low rate lifetime trackers, or who simply fail the remortgage criteria of high street lenders.

“With rates from 4.43%, a Second Charge loan can deliver a great outcome for these customers.”

“Fees have always been the ‘elephant in the room’, and we are trying to reach out to intermediaries who have historically shunned second charges, with a proposition they can trust.”