Brilliant Loans will be responsible for marketing and packaging secured loans as part of Exclusive Connections’ plans to diversify in 2007. Brilliant Loans will package cases for a number of lenders on behalf of intermediaries, even if they are not Exclusive Connection members. The decision has also been taken not to offer a payment protection insurance (PPI) initiative.
Matthew Arena, managing director at Exclusive Connections, commented: “If secured loans are going to make a bigger impact on the wider broker market, then the contentious issue of ‘compulsory’ PPI needed to be addressed. Many brokers are not comfortable with a culture that seems to make PPI compulsory. It should be up to the broker and his client whether it is appropriate.”
Keith Street, director of sales at Kensington Mortgages, said: “There are many instances when a secured personal loan is a more suitable option for a customer than remortgaging and we believe this is a product that traditional first charge advisers need to take more seriously.”
Alan Lakey, senior partner at Highclere Financial Services, said: “It’s not often that secured loans are the best option but they can be useful. The drawbacks are that rates are always higher than a main mortgage, the repayment term is shorter and there can be steep penalties.”
