With many high street lenders increasing their rates, it is not surprising that consumers might be looking for a better product. Similarly, there will plenty of customers out there who have decided to remain in the current property and upgrade their home rather than move, so a remortgage might ‘makes sense’.
The challenge that many such customers might come across however is that a remortgage will undoubtedly mean a change to interest and repayment rates, which most consumers wouldn’t be happy with. Traditional lenders have tightened their lending criteria, making it increasingly difficult to secure the low rates that many clients hope for.
What shouldn’t be ignored however is the opportunity presented to a broker by a secured loan. By taking out such a product, consumers can still benefit from retaining the rates and terms of their current mortgage, but still secure the funding needed for their home improvement projects.
There are a number of benefits of secured loans over remortgaging. Firstly, the application and completion processes can be muchquicker and simpler, and the money can be used for almost any purpose. In addition to this, secured loans often work out cheaper, as the loan is often over a much shorter period than the customer’s mortgage and they can keep the benefits of their current mortgage interest rates.
With the market as it currently stands, brokers should really recognise the benefits of secured loans and consider broadening their product range to better suit their clients’ needs.
