HIPs will shift intermediaries’ product focus

Andy Moody, managing director of Loanoptions.co.uk, said: “Regardless of the political reasoning, HIPs will, at best, add another brake to the housing market. At worst, it could become a catalyst for a widespread contraction in house sales. Either way, intermediaries should be looking for different services to offer clients to replace income streams that will be hit severely, if the housing market fails to quickly assimilate the burden that HIPs implementation will entail. We are working with intermediaries to develop other business streams for them. We are also very much involved in helping our introducing brokers to see the potential in the commercial market.”

Adam Henry, sales and marketing director for Money Partners, said: “Secured loans represent an untapped channel for many brokers looking to widen their product offering. They also represent a truly viable option for clients looking to unlock the value of accrued equity in their homes. With the help of experienced and established packagers, they can access this valuable market with ease and confidence.”

But Rod Murdison, proprietor of brokerage Murdison and Browning, was not convinced by the news. He said: “It would be great if you could just move into secured and commercial loans as you earn more money because the deals tend to be bigger. It is a nice theory, but these sorts of deals don’t just come your way. Where do I suddenly get that business from? Secured lending is lending of last resort and there is a limited number of circumstances that it is valid for a customer. I will quite happily do more secured lending business, if I can look the customer in the eye as I do so.”