Click reveals broker secured loan worries

Having conducted over £20 million worth of business in 2006, with estimations that this would rise to £40 million by the end of 2007, Click confirmed the secured market was booming. Steve Teague, managing director at Click, admitted that intermediaries were still concerned about secured loans, but with advances in technology and in business practices, the sector was likely to grow.

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He said: “Over the past couple of years, the secured loans sector has improved its image, with the formation of the Association of Finance Brokers and using ‘Treating Customers Fairly’ and other Financial Services Authority guidelines.

“However, all many consumers want is to know if they can get finance, they rarely know the ways to do this. There’s been a lot of uncertainty in the market, but where there is uncertainty, there is opportunity.”

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Alan Lakey, senior partner at Highclere Financial Services, said: “The secured loans sector will undoubtedly grow over the next 12 to 18 months. Some borrowers will have to go down this route because of lender limitations, but some intermediaries in the market might also use secured loans as an alternative to other options as a way of increasing the fees that they receive for the work that they do in securing the product.”