The secured loan has been around for a number of years, but it is really only over the past year to 18 months that it has been allowed to be mentioned in the same breath as first mortgages or remortgages. It was looked upon as the very last resort or even completely ignored as a solution. However, this is no longer the case.
The London Mortgage Business Expo is always a good gauge of what is happening in the market and if 2006 is anything to go by we can look forward to continuing growth in this once frowned upon sector.
Access has now exhibited at six Expos and since its first, when secured loans were an unknown product; the knowledge of the visitor has grown enormously. Previously brokers wanted to know what the actual product was and told us in no uncertain terms that they would never consider secured loans as an option for their clients. Now we are asked about product range, commission structures and service levels. This is fantastic news as the message has certainly now got across that the product has been accepted as an essential tool in their ability to give best advice, and as one of the original exhibitors maybe we can take some credit for the education and opening of eyes to a new opportunity.
The number of exhibitors also shows the rise in confidence and acceptance of secured loans. When we first exhibited, there were only a couple of secured loan brokers or packagers. In 2006 the industry accounted for almost 20 per cent of the floor space. In fact, there were so many exhibitors, the event organiser wants to make a dedicated section for secured loans at its next Expo.
The product range has expanded along with the number of lenders entering the market, and the major entrant this year has to be Kensington Personal Loans. You may recall 10 years ago when Kensington entered the first charge market their innovative product range transformed that sector and they are now looking to do the same in the secured market. This will force the other lenders into looking at their product range, further enhancing the product range and diversity available in the growing sector.
The CFB is no more and has been replaced by the Association of Finance Brokers (AFB) with the promise of championing the cause of the secured loan broker. We should now have a voice with full lobbying power in the AFB. Monthly bulletins and updates have been promised to keep us up-to-date with the issues.
his has been an excellent year for our sector of the industry, we have witnessed many changes implemented, both by lenders and intermediaries in the market, which have resulted in us having a much higher and more positive profile than we did at the outset of 2006.
I think that everyone in the secured loans market can look forward to 2007 when although there will be challenges and hurdles to overcome, I am sure that our industry will continue to mature into a very important part of the financial services market. mi
