Secured loans offer an opportunity not to be sniffed at

As the head of a mortgage club it is important to keep a variety of sectors of the market on our radar to ensure our members are being well serviced.

Of course it is no longer all about mortgages. For forward-thinking brokers it shouldn’t have been for some time and diversity remains the buzz word.

This market is constantly changing, hence the reason why my eye was drawn to a comment piece entitled ‘Ride the secured loans wave of change’ (Mortgage Strategy February 2).

Pre-credit crunch the secured loans market was growing rapidly and changing perceptions along the way. Like most sectors this momentum was stopped in its tracks by the credit crunch. But I agree with the sentiment of the article and can sense a renaissance brewing in the secured loans sector.

Of course, this optimism is still blighted by funding issues and we have to be realistic in the current climate. But when funding does return it could be the secured loans sector that is one of the first to feel the benefits.

Indeed, it could be argued that brokers are failing in their regulatory responsibilities if they do not explore all the financial options to provide solutions for their clients’ circumstances.

Distribution in the sector is changing. Technology has become better and, as highlighted in the article, traditional consumer-facing specialist secured loans brokers are moving out of the sector because the economics don’t stack up, leaving a gap for mortgage brokers to step into.

So there is opportunity and in a challenging market such as this when opportunity comes knocking it is certainly not to be sniffed at.

Phil Whitehouse

Head of the Mortgage Alliance

By email