There may be one silver lining to the credit crunch as brokers embrace niche areas such as debt solutions, says Andy Moody, managing director of Loan Options.
He says it is very evident that striking changes in the whole area of advice are taking place that would have taken much longer to evolve if it had not been for the credit crunch.
He says: “Having fought long and hard, along with many others to have secured loans accepted as a mainstream product, I am fascinated to see how quickly both mortgage and investment orientated advisers have taken to the relatively new area of debt solutions.”
He says the sheer number of cases that no longer fit a lending solution has forced many advisers to move beyond their normal role and look at alternative services to help their clients.
Moody says: “Historically, advisers have been reluctant to embrace new niche areas, either because of a past reputational problem, as in the case of secured loans, lack of understanding or because in the case of debt solutions, instinctively, they would have thought that this was not in their portfolio or experience.
“However, our experience has been that when offered the opportunity to have their failed secured loan clients referred to our sister company TCF Debt Solutions, more and more are keen to have the chance to help their clients further in a controlled and compliant manner, safe in the knowledge that their clients are receiving advice specific to their needs and that they will be referred back to their adviser when they have completed their debt programme.”
He says advice has moved on and evolved far faster than it would have in an ordinary market. The current crisis has accelerated the process of advice from one of filling a need to borrow to include a valuable service to those whose access to funding is no longer viable or in their best interest.