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Secured loan market set to rocket – Phoebus MD

  • 25/04/2013
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Secured loan market set to rocket – Phoebus MD
Secured loan companies are gearing up to launch more deposit-covering loans for first-time buyers, according to a lender specialist.

Phoebus Software managing director Paul Hunt said he was aware of increased activity in the seconds market as lower rates made the products more competitive.

He said: “We have got quite a lot of phone calls from people saying, ‘Have you got a second system?’ Over the last twelve months the phone calls have rocketed.”

First-time buyers and anyone struggling to find a deposit could benefit, he suggested: “Housing transactions will increase and it will be easier for people to move. It gives them other options.

“Brokers should be selling them at the moment, but their job is to make sure it is the right thing for their client.”

Secured lending climbed to £352m in 2012 with borrowers taking out 23% more credit in this form than the previous year.

Last month, Shawbrook Bank head of secured lending sales Maeve Ward argued secured loans could be a more flexible alternative to remortgaging.

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