Dave Pinnington, business development director V Loans, the Cheshire-based secured loans packager, says that although the clock is running down for clients on interest only mortgages it offers a great opportunity for intermediaries.
He said: “The bell is tolling for the likely end to interest only as an alternative repayment method.
“For some time now we have seen a dramatic increase in the demand for secured loans from mortgage brokers with interest only borrowers who need to capital raise and protect their interest only mortgage at the same time.
“We are also well aware that a common practice deployed by mainstream lenders is to only approve further advance applications on the basis that all of their borrowing is converted onto a repayment basis, whilst others demand proof of repayment vehicles, even if the mortgage has been in place for years.”
He added: “As the first charge market continues to limit the options available to clients the secured loan sector offers a real alternative for brokers and their clients.”
