Sunday, June 7, 2020

Derby firm moves into the second mortgage market

UK mortgage advice firm Finance Advice Centre has set its sights on further growth in 2017 after launching a new in-house loans service to meet the rising demand for second mortgages.

The company, which is based in Raynesway, Derby, has begun directly handling applications for secured and unsecured personal loans, following an increase in the numbers of clients looking to borrow more money.

Finance Advice Centre used to refer customers to third-party loan brokers but believes it is the first company in the city and one of only a handful of adviser firms nationwide to bring the service in-house.

It says its decision was prompted by an increase in the numbers of inquiries for loans, especially secured loans, which are taken out against an owner’s property and, as a result, are known as second charge mortgages.

The rise has come in the wake in a change in industry rules last year, contained within the Mortgage Credit Directive, which brought second charge mortgages under the Financial Conduct Authority’s Mortgage Conduct of Business rules.

Some experts are predicting that the second charge mortgages market will grow by 10% by the end of the year, with reports putting the average amount loaned out at around £60,000 to £70,000.

Finance Advice Centre has offered all of its mortgage advisers the opportunity to undergo extra training in order to offer loans to clients, while it will also seek to recruit more advisers to deal with the extra demand.

Matt Cassar, managing director of Finance Advice Centre, said: “We have always kept our eyes out for new ways to serve our customers due to changes in the law and customer behaviour and offering secured and unsecured loans directly was a logical step for us.

“Second charge mortgages are becoming increasingly popular at the moment because rates are low and they can be a quick and easy lifeline to people who, for whatever reason, can’t or don’t want to remortgage.

“It has taken us months of hard work to get to the situation where we truly have access to the whole loans market and we believe that we are helping to lead the way in the industry when it comes to arranging loans in-house.

“This move benefits all parties and we would hope that 10% of our business will involve arranging loans this year. We are also expecting to recruit new advisers to help us grow the company in this up-and-coming area”.

Cassar, who used to play professional cricket with Derbyshire and Northamptonshire, founded Finance Advice Centre in 2014.

A message from the Editor:

Thank you for reading this story on our news site - please take a moment to read this important message:

As you know, our aim is to bring you, the reader, an editorially led news site and magazine but journalism costs money and we rely on advertising, print and digital revenues to help to support them.

With the Covid-19 lockdown having a major impact on our industry as a whole, the advertising revenues we normally receive, which helps us cover the cost of our journalists and this website, have been drastically affected.

As such we need your help. If you can support our news sites/magazines with either a small donation of even £1, or a subscription to our magazine, which costs just £33.60 per year, (inc p&P and mailed direct to your door) your generosity will help us weather the storm and continue in our quest to deliver quality journalism.

As a subscriber, you will have unlimited access to our web site and magazine. You'll also be offered VIP invitations to our events, preferential rates to all our awards and get access to exclusive newsletters and content.

Just click here to subscribe and in the meantime may I wish you the very best.






Latest news

Union hits out at East Midlands aerospace parts firm as 420 redundancies planned

Aerospace parts firm SPS Technologies "must not exploit the lockdown" to slash jobs and terms and conditions at its sites in Nottingham, Leicester and...

Streets focus on job and employment schemes in latest business update

Streets Chartered Accountants provide details of changes to Coronavirus Job Retention Scheme including the introduction of flexible furlough in its latest business support update. As...

3 business tips for saving money during Coronavirus

Coronavirus has changed every business in the world. Whether you’ve been made to work remotely, put your staff on furlough, or redirected your resources into...

New ownership for Market Harborough ventilation, maintenance & hygiene company

System Hygienics, formerly the service arm of the Hotchkiss group - the largest duct manufacturer and installer in the UK – have new ownership,...

Construction of Kirkby’s new Leisure Destination takes a step closer

Plans to bring a new state-of-the-art leisure centre to Kirkby in Ashfield have taken another step forward. Ashfield District Council is seeking tenders from contractors...

Related news

Shared office spaces cautiously reopen

Many of the UK’s network of 5,000 shared office spaces are tentatively re-opening this month as more businesses return to the workplace as the...

Union hits out at East Midlands aerospace parts firm as 420 redundancies planned

Aerospace parts firm SPS Technologies "must not exploit the lockdown" to slash jobs and terms and conditions at its sites in Nottingham, Leicester and...

Streets focus on job and employment schemes in latest business update

Streets Chartered Accountants provide details of changes to Coronavirus Job Retention Scheme including the introduction of flexible furlough in its latest business support update. As...

3 business tips for saving money during Coronavirus

Coronavirus has changed every business in the world. Whether you’ve been made to work remotely, put your staff on furlough, or redirected your resources into...

By continuing to use the site, you agree to the use of cookies. more information

The cookie settings on this website are set to "allow cookies" to give you the best browsing experience possible. If you continue to use this website without changing your cookie settings or you click "Accept" below then you are consenting to this.

Close