The average UK mortgage broker receives seven secured loan enquiries each year, according to a poll conducted out by Y3S Loans.
The firm polled the 4,500 registered users of its miloanbroker.com sourcing system.
Over 50% of respondents said that for speed of response they preferred to get secured loan quotations for their clients online first before subsequently discussing the application with an underwriter in more depth.
72% said they would consider a secured loan for their client if they were in a tie-in period with their existing mortgage, while 90% stated that they would offer a secured loan rather than a remortgage if their client was benefiting from a low SVR.
Meanwhile, 51% of brokers saying that they would offer a secured loan as an alternative solution if a client could not afford the valuation and application fees on a remortgage that were payable up front.
In addition, respondents were asked whether they considered secured loans to be a credible alternative to remortgaging; just 5% of respondents said ‘No’.
“Our latest poll reflects the born-again feeling that those of us in the sector are experiencing right now,” said Y3S director Matt Cottle.
“There is an army of 12,000 mortgage brokers out there uncovering over 80,000 secured loan enquiries a year, primarily for debt consolidation and home improvements. With new confidence, new lenders and a suppressed mortgage market, this is a sector that is about to explode into the mainstream once again providing brokers with new streams of revenue that cannot be ignored.
“In the face of limited availability of mortgage finance, brokers should be talking to every client on their books with a view to offering credible alternative financial solutions like secured and bridging loans,” Cottle added.
