Being in the secured loans market, I always find it interesting to explore publications that concern themselves directly with this exciting area. The articles were all remarkably well-written and informative so it was with some surprise that I read Gary Bailey’s article asserting that Blemain was the first firm to promote the equitable charge facility for secured loans.
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As far as I can remember that ‘honour’ goes to Prestige Finance, which introduced equitable charges two years ago. This was pioneered by Simon Stern who, despairing at the inflexible attitude of many non-conforming lenders, was looking for a way to allow clients to arrange a secured loan.
He wrote many articles promoting the rights of clients who had been threatened with repossession by their lenders, but who had been left in a position that they were unable to clear their debts. Stern then spoke to solicitors and barristers regarding alternatives and they suggested the equitable charge – something that was well known to the mortgage market.
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They advised that Prestige could use the equitable charge but that the laws relating to it were slightly different because another consideration period applied as per Distance Marketing Regulations. The changes necessary were put in place and Prestige completed its first equitable charge in January 2005.
Lisa Hall
Broker relationship manager
Prestige Finance
