Often used as an alternative to re-mortgaging and further advances, the survey also revealed that only 2% of brokers have failed to place a secured loan since January despite the fact that 92% said they did not actively promote secured loans through their website.
Tom Garratt, Head of Intermediary Channel at The Loans Engine, says:
“There has been clear growth in the number of secured loans offered as a viable finance solution. Homeowner loans can be a worthy alternative to other personal finance methods, especially for people who have poor credit history or those who are looking to consolidate their debts. The popularity of secured loans shows no signs of slowing, which is due to the fact that they can be extremely beneficial to many people.”
Figures come after the FCA introduced tougher mortgage criteria as part of the Mortgage Market Review. Statistics published by the Bank of England in May revealed that remortgage approvals had fallen by 15% in value compared to the previous year, leading to calls for a wider range of lending options.
The FCA guidelines also promote the importance of consumer end results and the customer’s ability to make well-informed and affordable decisions. And, when asked, 80% of brokers agreed that they chose to offer secured loans as part of a ‘whole of market’ solution.
Maeve Ward, Sales Director for Secured Lending at Shawbrook Bank, comments:
“At Shawbrook we have long been championing the secured loan as an alternative to a remortgage, and these recent figures suggest that now couldn't’t be a better time to start considering it as a great way to raise finance for your clients.
"A secured loan allows your client to keep their existing mortgage in place, which could potentially save them thousands of pounds in early repayment charges and fees. Similarly, your client could be on an interest-only or tracker rate that they could lose if they were to remortgage, which could mean that they incur higher monthly repayments. A secured loan on the other hand works perfectly alongside your client’s mortgage, and with our human approach to lending and the fantastic service offered by the Loans Engine, we can ensure that your clients achieve the very best outcome for their circumstances.”
