Don’t forget secured loans

Brokers are being urged to make more use of secured loans as a borrowing option for their clients by Promise Finance.

Steve Walker, managing director of Promise, spoke of the secured lending opportunities available at a seminar during the Mortgage Business Expo last week.

Walker says: “Anyone licensed by the Office of Fair Trading should consider becoming an introducer, particularly if they have a substantial contacts list and maintain regular customer contact.”

He believes brokers could make more use of secured loans and open up more products to their client.

Walker adds: “There can be as little or as much work and involvement on the part of the introducer as they choose.

“And they could also earn an average of 1,000 per loan completion.”

Promise suggests secured loans may be a good option for some clients and should be considered more often. A secured loan could be offered to people who have County Court judgements or are bankrupt. And the loans can be given within a few days.

Advisers who consider becoming introducers should make sure they are appropriately licensed by the OFT and decide how much involvement they want to have in the process.

Walker says: “I recommend dealing with brokers rather than lenders as it is easier. An introducer just needs the basic information and then can pass the case to the broker who will initiate contact with the client and follow up.”

Walker says potential introducers should research brokers before committing to them. All aspects of compliance and complaints systems should be looked into and introducers should make sure their brand will be protected by the insurance broker.