Lack of equity was the main reason cited for the decline with affordability being another key issue.
Richard Keen, head of intermediary development at The Loans Engine, said: “The Broker Stance Survey results confirm the continued restrictions on the high street and further highlight the lack of loan to value lending options available to borrowers.
“Yet more and more financial intermediaries are realising all is not lost if a remortgage lender declines their application and are evidently turning to secured loans as an alternative means of raising finance for their clients.”
Intermediaries are already starting to note the problems presented by dwindling acceptance levels and evidently are turning to other means of finance as 80% of those surveyed reported they recommend secured loans to their clients.
The awareness of products is also encouraging as the majority of brokers, 60%, knew that LTVs on a secured loan are available up to 95% LTV.
Keen added: “It’s fantastic to see that secured loan awareness is increasing. However despite the rate of declined remortgage cases a small percentage of intermediaries still believe mortgages are the only option and we encourage these brokers to extend their product offering as it’s never been more important for borrowers to have access to whole of market advice.”
Simon Stern, director of Prestige Finance, said: “These results are yet another boost for the secured loans industry. Demand for secured loans is increasing as more and more introducers understand the benefits of the products available to their clients and the solutions that are accessible for the widest range of circumstances.”
