More brokers looking at seconds for home improvements
Fluent for Advisers, the intermediary arm of Fluent Money, has seen a marked increase in home improvement second charge loan requests from introducers.
According to the Finance and Leasing Association (FLA) in June second charge new business volumes rose by 17% year-on-year.
Its analysis that more people are renovating or extending rather than moving echoes the results that Fluent for Advisers are seeing.
Jeff Davidson, (pictured) Fluent’s head of intermediaries, said: “If there was ever a case for secured loans, the rise in homeowners seeking funds for expanding or renovating their existing property, this is it.
“The case for remortgaging is particularly weak in these cases when customers are usually borrowing relatively small sums in relation to their first mortgages and want a specific amount of money which does not involve a wholesale upheaval in their financial arrangements.
“A secured loan delivers on many levels and particularly by not tying customers to a first mortgage whose long term might mean that customers pay interest for far longer than necessary.
“I would urge more advisers to look again at the secured loan option as it can be the best choice for customers who want a funding choice specific to their needs.”