A new survey has found that 88% of brokers are anticipating to write more secured loan business when new consumer credit regulation comes into effect in April.
The Loans Engine Broker Stance Survey also established that 25% of brokers have seen the levels of secured loan business rise by 50% compared to a year ago.
Meanwhile, just under half (48%) of respondents said they didn’t even recommend secured loans until 2013.
“There is a clear optimism from brokers when it comes to secured loans and you can gauge how the industry is going to move in terms of growth,” said Tom Garratt, head of intermediary channel at The Loans Engine.
“But more importantly, these results highlight just how regulation of consumer credit is going to impact the industry as a whole.
“The FCA wants to ensure that borrowers are treated fairly and are being provided with all the information to make informed choices that meet their needs and has already decided that secured loans are a potentially suitable alternative to remortgages and further advances. Anyone that ignores them completely will be taking a very risky approach- the days of saying ‘we don’t sell it so we don’t have to think about it’ are likely to be over.
“Regulation will also represent a step-change in the way our industry is governed. The higher standards of professionalism will make many brokers feel more comfortable, especially when referring to third party providers that are regulated by the FCA, as they feel they are more likely to be dealing with people they trust to treat their customers fairly – this trust will be integral to driving success in 2014.
“However, 2014 will be a testing year for many. But one thing is clear: it’s never been more important for borrowers to have access to whole of market advice.”
