Think again about secured loans, brokers told

Published on

loan application

Brightstar Financial argues more intermediaries should reconsider secured loans as a viable capital raising vehicle.

Latest figures from the Finance & Leasing Association (FLA) show that May saw a rise of 17% in secured loan lending over May 2011, with completed mortgages over £300 million for the first time since November 2010. This comes on the back of strong growth of 14% by value and 4% by volume in the first quarter of 2012.

Bradley Moore, director at Brightstar Financial, believes the effect of so many mortgage customers being ‘trapped’ with their current lenders by the withdrawal of interest only and tougher criteria impositions with other lenders, has opened up a new avenue for advisers to recommend secured loans.

He said: “The evidence is clear. The new figures underline the proof that secured loans with their transparent structure, historically low cost, improved lending criteria and no upfront charges can provide a welcome avenue for brokers looking to raise capital for clients in the face of the restrictions in the mainstream mortgage market.

“Secured loans provide an alternative way for clients to release equity from their home whilst leaving their current mortgage in place and Shawbrook has certainly experienced a higher demand as both brokers and clients realise their importance as a viable alternative to remortgaging,” added Maeve Ward, head of sales, secured lending at Shawbrook Bank.

Latest POLL

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

Square 1 Media announces May Mortgage Market Debate

Square 1 Media is to hold its next Mortgage Market Debate on Wednesday, 21 May,...

Coventry BS maintains status as one of the best workplaces

Coventry Building Society has been named one of Great Place to Work's UK’s Best...

Atom bank breaks Near Prime record

Atom bank has reported another record-breaking month for Near Prime activity. Over the course of...

Berkeley Alexander appoints new BDM

General insurance provider Berkeley Alexander has announced the appointment of Grant Robinson as a...

Other news

Lenders must step up on high LTV products

Things are on the up for borrowers with a smaller deposit. The financial information...

Square 1 Media announces May Mortgage Market Debate

Square 1 Media is to hold its next Mortgage Market Debate on Wednesday, 21 May,...

Coventry BS maintains status as one of the best workplaces

Coventry Building Society has been named one of Great Place to Work's UK’s Best...