Two-thirds of secured loans used to consolidate debt

Clever Lending are seeing 61% of their secured loan cases being used for debt consolidation.

Related topics:  Specialist Lending
Rozi Jones
29th July 2015
couple debt worry forms

For clients reorganising their finances from more expensive forms of borrowing to a secured loan, Clever Lending are experiencing much higher enquiries for this purpose than for other key uses such as home improvements.

Lenders are responding to the demand with not only more products, which are at an all-time high, but more choices for consumers such as fixed rates, ability to make overpayments and clear, transparent fee structures.

The advantages of a secured loan are attracting the rise in products and their uses for brokers and their clients. Rates are generally lower than credit and store cards, and the amounts that can be borrowed are typically larger than unsecured loans. They can also be taken out over a longer period than an unsecured loan, meaning customers can consolidate their unsecured debt into one monthly payment.

Sonny Gosai, Sales & Operations Manager at Clever Lending, said:

“The amount of secured loans we arrange for brokers and their clients is being reflected in the number of products available. Lenders have shown real confidence in this sector and are providing products to meet almost every situation. There really is a loan out there for everyone who needs to refinance their existing debt.

“Brokers too are responding well and we work hard to educate and communicate the benefits of secured loans for a wide variety of customer types.

“For many people it’s a clever solution for the longer term rather than recycling debt to other high interest cards or loans. Even if there’s a low APR credit card offer to transfer to, this may only be a short term fix and not suitable to restore a client’s credit profile over the longer term. For these reasons secured loans can be the better option to help repair a customer’s credit file and get the client back on their financial feet.”

More like this
Latest from Property Reporter
Latest from Protection Reporter
CLOSE
Subscribe
to our newsletter

Join a community of over 30,000 intermediaries and keep up-to-date with industry news and upcoming events via our newsletter.