AFB: Mortgage brokers increasing secured loan involvement

18 April 2007
Mortgage intermediaries are advising more people on secured loans, according to research carried out last month by the Association of Finance Brokers (AFB).

The findings of the study show that, in the past month, 56 per cent of intermediaries advised consumers on between one and ten secured loans, with nearly half of these using two to five lenders to carry out the secured loan business.

Robert Sinclair, director of the AFB, explained: "In recent years mortgage brokers have been saying that they want, or intend, to become more involved in offering secured loans. This review shows it is now happening."

The fact that mortgage brokers are issuing advice on secured loans to customers, and that many companies regard it as a specialist area, means it "should ensure that the customer receives good quality advice".

When it came to the issue of payment protection insurance (PPI), Mr Sinclair pointed out that mortgage brokers were less accustomed to single premium deals than secured loan specialists, something which "raises questions for both groups".

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