Smart Money reports surge in post-COVID consolidation

Jake Carter

March 22, 2021

mortgage products drop

Smart Money has reported a surge of broker enquiries for clients who want to better manage their family budgets following the fallout of COVID-19.

The specialist packager and distributor noted its looks to identify where its broker introducers can suggest the successful implementation of a second charge mortgage.

It outlined that as the pandemic restrictions ease and the economy picks up, income levels are going to improve quickly.

As a result of this, it believes customers will not want to be saddled with a long term remortgage scenario, when a more targeted second charge loan can deal with the specific issue.

Paul Crewe, managing director at Smart Money, said: “When we talk about debt, we tend to lump everyone together who cannot support their current expenditure.

“Consolidation loans are tailor made for a second charge application and while those are increasing, many more recent enquiries are on behalf of clients looking for options as to how they can manage their budgets better.

“Incomes have dropped due to furlough or been lost temporarily as businesses have cut back, but costs have stayed the same and broker customers are looking to see how they can reduce their monthly outlay to better match the new income reality.

“These applicants would not consider themselves to be ‘in debt’ when in normal circumstances they can easily afford their outgoings.

“Brokers might not feel comfortable with customers seeking help of this sort, but that is what specialists like Smart Money can help, enabling them to either refer those clients to us for recommendation or to work with us to be confident of making the right call on their behalf.”

Sign up to our daily email