The combination of increasing house prices and a higher cost of living has seen a surge in the secured loans market in recent years, as borrowers have struggled with affordability. These elements have gone hand in hand with the ‘spend now, pay later’ attitude, which has led to a reported £1.3 trillion of consumer debt. The majority of loans we process are used to consolidate debts into one monthly repayment.
Brokers have recognised there are many circumstances when a secured loan is more suitable option for their client, instead of a further advance or remortgage. By giving clients a secured loan option, advisers are meeting the FSA ‘best advice’ requirement and adhering to its ‘Treating Customers Fairly’ policy.
No longer is the secured loan sector looked upon as shark-infested waters. Brokers are keen to offer this extra facility to their clients with lenders showing an appetite by launching competitive products.
We are pleased to report an increase of business generated by the second charge arm of our online proposition. One major responsibility we have is developing the educational aspect of secured loans lending.
GHL Group is a dedicated packager with an excellent panel that is able to provide the right kind of second charge facility. Secured loans are a genuine alternative.
Naz Licence is head of secured loans sales at GHL Group
