Reasoned argument key for second charge growth

Published on

How do we get more brokers to ‘do’ secured loans? Well, the answer is – you don’t or at least you don’t if you try and hit them over the head and insist that they take up secured loans.

One of the main issues that has stood in the way of greater take up in the intermediary community is the way in which has been marketed in some quarters. Post MCD, the regulator’s call that clients be made aware of secured loans, is not the same as insisting that brokers must use secured loans.

Unfortunately, that was the message that many brokers took from the publicity generated by certain stakeholders in the market. Thankfully, advisers, particularly those who have lived through the myriad economic and regulatory changes over the past few years were never likely to be swayed by that kind of rabble rousing. Even the promise of ‘cheaper’ fee structures failed to overcome the inbuilt scepticism.

The truth is that brokers don’t want to be ‘told’ that they must use secured loans just because the regulator says that clients must be aware of secured loans. The endorsement from the FCA was never meant to be a green flag to thrust secured loans down the throats of the intermediary community as if remortgaging had had its day. Indeed, the figures up to a year after MCD, showed how underwhelming that kind of message had been.

At Fluent, we always believed that education was the key to unlocking the potential for secured loans. If advisers began to see where second charge loans could be used and were the appropriate choice, there was a better than even chance that business would flow as a result. For us, that has definitely been the case.

There remains much to be done in terms of education and challenging outdated preconceptions about the sector. But, please let’s have no more talk that advisers must recommend secured loans. If we do our job properly and demonstrate where they fit, the overwhelming evidence is that good advisers are taking the message on board and new business has followed and will continue to grow.

Jeff Davidson is head of intermediaries at Fluent for Advisers

COMMENT ON MORTGAGE SOUP

We want to hear from you!
Leave a comment and get the conversation started.
You need to register to post, so please login or sign up below.

Latest articles

Bellway renews call for Help to Buy as housing recovery stalls

Housebuilder Bellway says the UK housing market recovery has “stalled” over summer, renewing its...

34 organisations back plan to accelerate green mortgage lending

Decarbonising Britain’s homes is one of the most complex and expensive challenges of the...

The West Brom raises income multiples to help buyers with smaller deposits

West Brom Building Society has eased its mortgage lending rules in a bid to...

Brokers warn of rising underinsurance as premiums outpace protection

A growing number of brokers fear that more households are falling into underinsurance as...

The Exeter appoints new company secretary

The Exeter has named Karen Senior as its new company secretary, following the retirement...

Latest publication

Latest opinions

Could a move to ‘enhanced advice’ also mean mandatory protection conversations?

The FCA’s recent Mortgage Market Discussion Paper (DP25/2) has got the industry talking about...

Take off the rose-tinted glasses and stop chasing a rate cut

Every six weeks the financial world raises its eyebrows at the prospect of a...

Job cuts to inflation shock: preparing for a mortgage arrears crisis

The latest data on jobs paints a picture of a rapidly weakening labour market. The...

URGENT! AI Is coming for you. Or maybe not…

I’ll try to make this as straight to the point as I can. The...

Other news

Bellway renews call for Help to Buy as housing recovery stalls

Housebuilder Bellway says the UK housing market recovery has “stalled” over summer, renewing its...

34 organisations back plan to accelerate green mortgage lending

Decarbonising Britain’s homes is one of the most complex and expensive challenges of the...

The West Brom raises income multiples to help buyers with smaller deposits

West Brom Building Society has eased its mortgage lending rules in a bid to...