Fluent for Advisers believes there is a negative attitude in some quarters about the prospects for the second charge market.
Figures over the last quarter from the Finance & Leasing Association (FLA) had shown a new business shortfall in comparison with the same period in 2016. Yet the February figures showed a 10% increase over January and according to Fluent’s chief commercial officer (COO), Tim Wheeldon, there is every reason to believe that the upward trend will continue.
He said: “Much of the negative commentary has been generated in the wake of the first anniversary of the MCD going live. Some pundits have tried to seize on the lower figures a year on as proof that secured loans would remain a peripheral player in the market.
“I have always maintained that just because MCD theoretically levelled the playing field and provided compelling reasons for the intermediary community to embrace secured loans when looking for capital raising options, it did not follow that there would be an immediate stampede. The sector was always going to have to have to engage proactively with intermediaries rather than, as some distributors did, expect the business to come rolling in straight away.
“Specialists like Fluent for Advisers are in this for the long term and we are in no doubt that our approach of putting a lot of work into education and creating a proper business case to brokers is the way forward and is already paying dividends for us in new business. My hope is that the naysayers will think a little more before adopting a negative attitude towards the sector when based on such a small amount of data.”