The sourcing system provider said the forecast was based on three trends; historically high growth since 2011, improved awareness of the consumer credit industry following the shift to the FCA’s supervison and the upcoming European Mortgage Credit Directive.
It pointed to historic data on the sector which showed the secured loans industry averaged 130% growth over the past three years, which took place without any of the regulatory changes now influencing business levels.
Gareth Broome, senior business development manager at The Lending Wizard, said: “In the past secured loans were often seen as a fall-back product, and something outside the comfort zone of many brokers.
“Over the past few years, however, this has started to improve. The changes under the FCA have had the dual effects of positioning secured loans as a mainstream lending product and tasking brokers with the explicit requirement to carefully review all the options in order to be certain of offering the best advice.”
Broome said he expects the European Mortgage Credit Directive to accelerate the changes which are already being seeing, encouraging intermediaries to make a considered appraisal of the alternative options available to them and ensuring that second charge loans are one of those options.
