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Mortgage companies diversifying in the secured loans arena
Experts are happy that mortgage brokers are advising on secured loans too, as it would ensures good quality advice to the loan seekers.
London – May 2nd, 2007: According to a recent survey conducted by the Association of Finance Brokers (AFB), mortgage brokers are increasingly using secured loans as an appropriate part of their advice to customers.
Robert Sinclair-the director of AFB- said, “In recent years mortgage brokers have been saying that they want or intend to become more involved in offering secured loans”.
He is happy to see that in many mortgage companies the business of secured loans is seen as a specialist area and that the companies are encouraging specific individuals to focus on this sector.
The survey revealed that nearly half of such companies have at least one specialised advisor and that they place their secured loan business between two and five different lenders.
Mr. Sinclair added, “It is encouraging to see that most have advised in this area in the last month, so are active in the market using of a wide range of lenders… We know this is driven by the circumstances of the borrower and ensuring the best deal for them”
The survey also revealed that the majority offer either monthly premium payment protection insurance, or a choice of monthly or single premium, but 20% do not offer PPI at all.
And, that only one out of 10 brokers are associated with the Finance Industry Standards Association (FISA) – the voluntary self-regulatory body operating in the secured loans market, with membership comprising of both lenders and brokers.
“However, mortgage intermediaries are not as comfortable with single premium PPI as specialist secured loan brokers... Very few of the mortgage brokers have taken up FISA membership, which does not seem to be a barrier to them writing business”, added Mr. Sinclair.
He concluded by saying, “We will continue to monitor how this sector develops and offer guidance and support to members of the AFB.”
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Experts are happy that mortgage brokers are advising on secured loans too, as it would ensures good quality advice to the loan seekers.
London – May 2nd, 2007: According to a recent survey conducted by the Association of Finance Brokers (AFB), mortgage brokers are increasingly using secured loans as an appropriate part of their advice to customers.
Robert Sinclair-the director of AFB- said, “In recent years mortgage brokers have been saying that they want or intend to become more involved in offering secured loans”.
He is happy to see that in many mortgage companies the business of secured loans is seen as a specialist area and that the companies are encouraging specific individuals to focus on this sector.
The survey revealed that nearly half of such companies have at least one specialised advisor and that they place their secured loan business between two and five different lenders.
Mr. Sinclair added, “It is encouraging to see that most have advised in this area in the last month, so are active in the market using of a wide range of lenders… We know this is driven by the circumstances of the borrower and ensuring the best deal for them”
The survey also revealed that the majority offer either monthly premium payment protection insurance, or a choice of monthly or single premium, but 20% do not offer PPI at all.
And, that only one out of 10 brokers are associated with the Finance Industry Standards Association (FISA) – the voluntary self-regulatory body operating in the secured loans market, with membership comprising of both lenders and brokers.
“However, mortgage intermediaries are not as comfortable with single premium PPI as specialist secured loan brokers... Very few of the mortgage brokers have taken up FISA membership, which does not seem to be a barrier to them writing business”, added Mr. Sinclair.
He concluded by saying, “We will continue to monitor how this sector develops and offer guidance and support to members of the AFB.”
Other Related News:
