The continuing squeeze on interest-only customers means they need brokers more than ever to capital raise, V Loans has claimed.
The secured loans packager believes brokers who are able to offer secured loans for capital raising as an alternative to remortgaging will see significant growth in their business.
“The bell is tolling for the likely end to interest only as an alternative repayment method,” said Dave Pinnington, business development director at V Loans.
“For some time now we have seen a dramatic increase in the demand for secured loans from mortgage brokers with interest only borrowers who need to capital raise and protect their interest only mortgage at the same time.
“We are also well aware that a common practice deployed by mainstream lenders is to only approve further advance applications on the basis that all of their borrowing is converted onto a repayment basis, whilst others demand proof of repayment vehicles, even if the mortgage has been in place for years.
“As the first charge market continues to limit the options available to clients, the secured loan sector offers a real alternative for brokers and their clients.”