FR: Now the acquisition by the Key Retirement Group has been completed what are your plans for expanding the services you offer and extending the intermediary base you work with?
V Loans was established to provide access to second charge products exclusively for UK intermediaries and we will continue to work hard to be the first choice Master Broker for second charge referrals. Being part of the Key Retirement Group means that we can further strengthen our proposition and we will be extending our services to a wider intermediary base to include those brokers and affiliate partnerships who enjoy an excellent working relationship with Key Partnerships; the intermediary brand of Key.
FR: Do you believe the over 50s market will be a major area for expansion?
There are huge opportunities to offer responsible lending solutions to older borrowers who have challenges in gaining access to mainstream finance. We have been working closely with our lending partners to provide more options to the over 50’s market to ensure common sense prevails when making important lending decisions. What I can say is watch this space!
FR: What has been driving growth in the secured loan market in the past year? How do you see the market developing in 2015?
The sustained low interest rate environment, and the uncertainty of when interest rates will increase, has meant many borrowers have been reluctant to disturb their existing mortgage deal. The continued reluctance of mortgage lenders to apply transitional arrangements to those looking to remortgage on a like for like basis means some borrowers have a lack of options available to them when it comes to further borrowing. In addition the pressure on interest only borrowers to convert to repayment mortgages when they need to release equity has also fuelled the demand for second charge mortgages. The appetite to lend from second charge product providers remains strong which has driven down interest rates to their lowest ever level - I would also expect to see an increased focus on second charge lending in the buy to let market in 2015.
FR: Do you believe the proposed regulatory changes to the second charge market will increase appetite for secured loans amongst mortgage intermediaries?
The alignment of the regulation of the first and second charge markets will serve to give greater credibility to second charge products and simplify the referral process for intermediaries; meaning more advisers will proactively consider second charges products as a viable alternative to remortgaging. I would also expect to see increased product innovation with more flexibility around early repayment charges, and the removal of some of the more outdated features of the Consumer Credit Act which offer little consumer protection.
FR: Why is the role of trade bodies crucial in helping to shape the future regulatory landscape?
There has never been a more crucial time for the role trade bodies play in shaping the future regulatory landscape. As an industry we are fortunate to be represented by the Association of Finance Brokers who regularly engage with the regulator and effectively lobby government departments to ensure the interests of our sector are fairly represented. It has never been more important for industry practitioners to be proactively involved with our trade body to make sure our voices are heard.
