A secured loan could be a much better option than a further advance, a remortgage or an unsecured loan and here's why...

If you have a client looking to borrow £20,000 you might normally suggest the following:

• A further advance   • A remortgage   • An unsecured loan

However in the current climate, it may be considered best advice to treat your customer fairly and look at a secured personal loan.

See below some common problems with altenative forms of credit and how a secured loan could help.

Further advance:

Common problems:

• Affordability based on income multiples
• May have had problems with their current lender
• Their mortgage company might not be granting further advance

Why a secured loan could be a better option:

• Affordability based on income rather than multiples
• Adverse considered on most plans
• Our lenders are looking to lend

Remortgaging:

Common problems:

• The client may be tied to a fixed rate and would be charged an extortionate redepemption penalty
• The customer will be charged an up front fee for a product they are not guaranteed to get
• Affordability based on income multiples
• Can take a long time to complete in the current market
• Client may have suffered from adverse payment history in recent years would be forced to move from a prime rate to a sub prime lender
• Current mortgage tracking base on a competitive SVR and would ultimately cost them a lot more on a monthly basis.
• There may not be a mortgage available for your clients current circumstances
• Your client may be self employed without account

Why a secured loan could be a better option:

• The client can continue paying their competitive SVR until rates start to rise
  
• Redemption for a secured loan is 1 month interest and 1 month notice so when you do remortgage, the exit fee will be much more reasonable
  
• Most purposes of a secured loan are acceptable
  
• Quicker turnaround than the average mortgage
  
• Client can leave their prime mortgage in place without paying exorbitant exit fee
  
• No up front fees
  
• Self employed self cert available
  
• A loan may be considered best advice in the right circumstances
  

Unsecured loans:

Common problems:

• Maximum term is normally 5 years
• Maximum amount is normally 15k which is rarely offered
• Very low acceptance rates

Why a secured loan could be a better option:

• Clients can borrow over longer term and keep their payments down
  
• Much more flexible requirements
  
• Client is able to borrow much more at a better rate
  
  

So why not try us with your next secured loan referral and experience our quality products and service for yourself.

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