Brokers unclear on secured loans

Lack of understanding of the secured loan market is deterring brokers from entering the sector, research from Promise Finance reveals.

Its survey of brokers found that most want to keep control of the sales process when sourcing loans for clients, but are unclear about how the secured loans market works.

Steve Walker, managing director of Promise, says: “Although over three-quarters of brokers prefer to retain control of the sales process rather than simply hand over prospective borrowers to master brokers, most are prevented from doing so by their poor understanding of the process.”

In the survey, over 80% of brokers said they preferred to know earnings potential at point-of-sale and be able to manipulate the fees clients are charged.

Since the Mortgage Business Expo in Manchester, Promise has introduced next-day payment of commission. The ability to print off specimen Key Facts Illustrations as well as sub-prime underwriting and debt management options are also being developed.