SLS has stressed that rather than backing away from the sector, lenders should be 'grabbing the opportunities it offers with both hands.'
Managing director, David Burrows, said it appeared that lending is simply swinging from one extreme to the other: “Yesterday we were able to cater for virtually anybody, but today we can cater for virtually nobody. Surely we must be able to find a happy medium?”
He added that he wanted to see more lenders considering the secured loans market as a long-term option and demonstrate a bit of staying power, whilst brokers should attempt to forge stronger relationships.
“Part of the problem has been that as soon as one lender launches a better product than the other, brokers jump ship forcing everyone to follow suit.
“If a lender does launch a very competitive product, why not make it available only through existing broker arrangements where they can be sure they are getting other business from that broker.
"Lenders must ensure they get the right mix of business rather than just being used for their high risk low profit product.”
