Unsecured loan option can complete broker lending service
30 November 2016
According to Fluent for Advisers, the second charge specialist, brokers should remember that they no longer have to turn down clients for smaller loans or those who require more immediate finance.
Jeff Davidson, Head of Intermediaries at Fluent for Advisers, says he has always talked to brokers about how unsecured loans can be a useful complementary proposition when remortgaging or a second charge loan are not viable.
He said, “At Fluent we have offered an unsecured option for a number of years and I have always tried to make brokers aware of where and how an unsecured loan can be of value.
There is a definite gap in many advisers’ armoury for clients who need to borrow smaller amounts and don’t want to secure against property or because they are tenants.
These are some of the most useful reasons to consider an unsecured loan:-
- Clients in shared ownership accommodation, tenants or living with parents
- Clients who do not want their partner on a loan agreement
- Clients who want funds within 48 hours
- Homeowners who do not want to increase their LTV
Jeff added, “For anyone wanting smaller sums up to £25000 or a term of up to 15 years with the added bonus of having cleared funds in their account in 48 hours or less, an unsecured loan can be a valuable tool in any broker’s offering to customers.
Of course, rates may be higher, but brokers are in the best position to gauge whether an unsecured loan could be an appropriate option for a customer.
Brokers should feel there is no longer any type of customer for whom they cannot cater in terms of borrowing.”
