Brokers missing a second charge trick

Tony Salentino of Complete FS, the South Coast based national mortgage and loan packager, claims advisers are in danger of missing a "huge opportunity".

He said: “Secured loans represent a far better and more sustainable business stream than most other supplementary income earners that have been marketed to intermediaries, such as will writing and debt management.”

Salentino suggested secured loans have come into their own when mainstream mortgage lenders clamped down on interest-only criteria.

He said this "marooned a massive group of borrowers who are now unable to remortgage to raise capital".

And he added: “We were able to reopen the door that had been closed on many brokers' clients who were trying to capital raise by remortgaging. We explained the feasibility of using a secured loan, which sits alongside the mortgage and provides the liquidity and flexibility which clients need.”

Salentino highted that secured loans are available with flexible criteria including six months self-employment and a more sympathetic attitude towards CCJs, defaults or past mortgage arrears

Rates are now available from 6.90% and usually have no up front fees. Loans can be used to pay HMRC bills or for credit consolidation.

Gary Bailey, sales and marketing director at Blemain Group, said: “The market for secured loans has already increased by 19% this year with completions running at over £30 million per month.

"Part of that is due to the underlying value that secured loans represent in terms of cost effectiveness, no upfront fees, convenience and transparency.

"However with the growing number of homeowners unable to remortgage secured loans are being recognised by intermediaries as one of the best ways to provide much needed finance for those clients and build a valuable source of future business.”