This new product specifically targets customers who may currently be using a more expensive unsecured option or a credit card facility. By providing a secured loan, at lower rates than alternative finance options, and by reducing the processing costs for brokers the Baby Loan provides brokers with a new market to target.
Maeve Ward, head of sales at Link Loans, commented: “77% of UK households have unsecured loan facilities, with a median average balance of £2,700. By designing a secured loan product for the £3k to £10k niche we have, in conjunction with our brokers, opened a significant market opportunity. We recognise a traditional stumbling block has been lenders’ appetite to write smaller balance loans and the processing costs for brokers in particular. We have specifically designed the product and criteria to remove this obstacle. We are delighted to be able to deliver a really innovative solution for the intermediary market, and we look forward to continuing this trend.”
With a loan size from £3,000 to a maximum of £10,000 and a rate of 13.9%, Baby Loans are available for employed and self employed borrowers. The maximum LTV is 60% and a loans term from 3 to 20 years. A lender fee of £595 (for loans of £3,000 - £5,000) or £795.00 (for loans of £5001 - £10,000) applies.
