Second charge loans are 'better and more sustainable', say Complete FS

"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."

According to Tony, a defining point was reached when mainstream mortgage lenders moved away from interest only, which, on top of the tightening of criteria, marooned a massive group of borrowers who are now unable to remortgage to raise capital.

He said, "For many brokers we have spoken to, the door that had been closed on their clients trying to capital raise by remortgaging, we were able to reopen when we explained the feasibility of using a secured loan, which sits alongside the mortgage and provides the liquidity and flexibility which clients need."

Advantages include:

- Flexible criteria including 6 months self employment, more sympathetic towards CCJ’s, defaults or past mortgage arrears

- Rates reduced  - now available from 6.90%

- Lower costs than a typical remortgage

- No up front fees

- Flexible approach to use of funds, ie: HMRC bills, credit consolidation

- Available on BTL’s

- Available on more unusual property types

- Speed to complete - typically 21 days

Gary Bailey, Sales & Marketing Director at Blemain Group, commented:

"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."