The poll, by Financial Reporter and V Loans, showed that nearly half of intermediaries were ‘actively considering’ recommending secured loans, with 27% responding that they hadn’t yet considered it as an option.
The full results of the poll – in which 502 intermediaries responded – are below.
Question: Have you considered a secured loan as an alternative to remortgaging for borrowers to protect their interest only mortgage status?
Yes, actively recommending secured loans 47%
Never considered secured loans as an alternative 27%
Would never consider this 26%
Dave Pinnington, Business Development Director at V Loans, comments on the results:
"It's encouraging to see that almost half of the brokers surveyed do consider secured loans as a viable alternative to remortgaging for their interest-only clients. Apart from being particularly flexible, the low redemption penalties and rates now starting from 5.59%, secured loans will allow homeowners to raise additional capital whilst leaving an existing mortgage deal intact, making the idea of remortgaging much less appealing.
"It's crucial that brokers understand the benefits a secured loan can present to their clients and in the wake of interest-only payment options withdrawing from the high street, it's never been more important for a broker to consider secured loans when looking to find the best deal for clients."
