No base rate change means income for mortgage brokers

Mortgage brokers and IFAs must to take advantage of secured loan opportunities for their clients while base rate remains unchanged, according to the secured lending team at Y3S.

As more and more people are coming off their discount or fixed periods, they are finding themselves benefiting from low base rates and paying much less than previously. Matt Cottle, Y3S Group director said: “By providing the client with a secured loan, brokers can help them raise additional funds without upsetting their existing low-cost arrangement and without incurring the up-front valuation and application fees associated with a remortgage, as well as being able to redeem at any time with just one month’s redemption penalty.

The broker will earn a commission of typically GBP 1000 for introducing their client to a secured loan packager.” And when base rate increases to the point where it makes sense to carry out a remortgage, the broker can once again steer the client in the right direction, providing a second earning opportunity.”