"Secured loans should be considered as a viable debt solution offering products that are affordable and sustainable."
Clever Lending says it has seen a sharp increase in broker enquiries on behalf of clients needing to get their credit profile back in shape at the start of 2017.
Bank of England data shows that personal debt grew 10.8% in the year to 30th November 2016 to £192.2bn in the UK - the highest level since December 2008.
The rise in household debt, alongside record low rates on second charge products, are creating more opportunities for brokers to help their clients, according to Clever.
The lender says if a client’s first charge mortgage has a good rate or still has early repayment charges, second charge products can be ideal to consolidate other debts that have built up.
Sam Kirtikar, managing director at Clever Lending, said: “There are more low rate second charge products on the market than ever before, many at highly attractive rates, so there are real opportunities now for brokers to help their clients. Although we can quickly source lenders who can individually underwrite cases where the customer has debt worries, getting a client’s credit profile in order can help their longer term financial situation. So it’s not just about the here and now.
“Secured loans should be considered as a viable debt solution offering products that are affordable and sustainable.”
