Steve Walker, Managing Director at Promise, said:
“I am pleased to say that these additional lenders help to fill valuable niches for intermediaries and there is little doubt that competition is really hotting up in the secured loan sector with the number of available lenders back into the teens.
"Having added Central and Portal Portfolio to our sourcing system, intermediaries have free access to instantly see that cheaper quotes are available and, as a result, more borrowers can be helped. This is good news for intermediaries and their clients as some lenders are now displaying a more innovative and aggressive approach to gain market share.
"Those experienced players know that there is margin to cater for greater flexibility and risk. However, some of the institutional lenders, on which part of the market relies, have not yet caught up which gives smaller lenders a great opportunity.
"With so many lenders fighting for business in the middle of the market, brokers now have the option to consider lender service as well as price when advising clients – especially if there is a small difference in repayments.
"To serve their clients better it makes sense for brokers to ask how lenders conversion rates, turnaround times and documentary requirements compare to help borrowers decide on the appropriate product for them.
"Rate is important but with more choice, borrowers may decide to pay a few pounds more to go with a lender which has less stringent or seemingly less pedantic requirements."
