According to the latest stats from Fluent for Advisers, there has been a marked increase in home improvement secured loan requests from introducers.
The latest second charge figures for June from the Finance & Leasing Association reveal a year on year increase in new business volume of 17% and their analysis that more people are renovating or extending rather than moving echoes the results that Fluent for Advisers are seeing.
According to Fluent’s Head of Intermediaries, Jeff Davidson, increasing home improvement requests are demonstrating exactly why advisers need to keep secured loans in mind.
He said, “If there was ever a case for secured loans, the rise in homeowners seeking funds for expanding or renovating their existing property, this is it. The case for remortgaging is particularly weak in these cases when customers are usually borrowing relatively small sums in relation to their first mortgages and want a specific amount of money which does not involve a wholesale upheaval in their financial arrangements.
A secured loan delivers on many levels and particularly by not tying customers to a first mortgage whose long term might mean that customers pay interest for far longer than necessary. I would urge more advisers to look again at the secured loan option as it can be the best choice for customers who want a funding choice specific to their needs."