CCA changes make secured loans more transparent, the national intermediary dedicated secured loans packager, is telling intermediaries to reconsider their strategy to help clients wishing to raise capital in the light of the credit crisis and changes to the Consumer Credit Act.

Andy Moody, managing director of, says the changes in the market and to the CCA mean that secured loans are in many cases a better options for many applicants.

He says: The new changes mean that all secured loans for residential purposes of any size come under the CCA and therefore every loan 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. 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 doesnt 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, those who wish to repay their new borrowing within a short period of time or anyone looking to have access to funds in a timeframe which remortgaging cannot match, are all candidates better served by secured loans. Given the protection of the CCA and the lack of any upfront fees backed up by a simple one months interest to redeem a secured loan, clearly they are significantly more transparent than a remortgage.