Neil Hoare, associate director of marketing and IT at Pink Home Loans says he would like to see the FSA regulate secured loans.
Following recent reports that the Office of Fair Trading would like to see Payment Protection Insurance and the secured loan sold separately.
Hoare says: “In terms of the issue with unbundling secured loans, this is something that we at Pink firmly support. Customers need to know what they have signed up to.
“We do not sell Single Premium Insurance products, which can often present a more costly protection route for the client. Pink prefers its intermediary customers to look at holistic protection planning for their clients and consider all of their individual needs before advising on which insurance products are most suitable for their requirements.
“Furthermore, Pink has always held a strong view that the sector is moving to become more regulated and that secured loans should be a firm part of the advice process and a valuable tool in the product kit bag. The fact that the mortgage is regulated by the FSA and then a secured loan isn’t, does not present a cohesive approach for the broker or their customer.”
Mark Fry, managing director of Colonial Secured Loans, says: “While the secured loan market has significantly improved its reputation over recent years, with the introduction of transparent and equitable early redemption penalties, FSA regulation would certainly enhance the secured loan status among the first mortgage intermediary market.”