Fluent for Advisers has reported an increase in home improvement secured loan requests from introducers.
The latest second-charge figures for June from the Finance & Leasing Association (FLA) show a year-on-year rise in new business volume of 17%. Its analysis shows that more people are renovating or extending rather than moving, which echoes the results that Fluent for Advisers is seeing.
According to Jeff Davidson, Fluent’s head of intermediaries, increasing home improvement requests are demonstrating exactly why advisers need to keep secured loans in mind.
He says: “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.”
Davidson is urging more advisers to check the secured loan option as it can be ‘the best choice for customers’ who want a funding choice that is specific to their needs.