Brokers urged to consider law change

Secured loans packager Loanoptions.co.uk is urging brokers to reconsider their strategies in line with the Consumer Credit Act changes.

The packager says the changes mean that all secured loans for residential purposes of any size now come under the CCA.

Andy Moody, managing director of Loanoptions.co.uk, says: “Every loan therefore has a cooling off period, so the client is not pressured and early repayment charges are a maximum of two months interest, depending on what point in the current month they notify the lender. “

He says: “When you add in that there are no upfront fees in the shape of application fees, booking fees and valuation and conveyancing costs, then it doesn’t take a genius to work out that on a direct comparison basis in many cases, secured loans are going to be better value for clients.”

He adds: “Clients tied in to their first charge lenders, customers with a deteriorating credit record since taking out their existing mortgage, or those who wish to repay their new borrowing within a short period of time, are those who will most benefit from secured loans.”