Press Release

Secured loans a clear solution for borrowers tied to fixed term mortgage deals

- mortgage holders tied in fixed term deals to benefit from secured loans

- capital release made simpler and cheaper in the longer term

- brokers to gain too

REDEMPTION penalties are adversely affecting many homeowners wanting to free up capital from their properties before their fixed term mortgage is up.

But Click, the secured loans master broker argues that in certain cases mortgage holders should bypass the charges and opt for a secured loan instead.

"Every month, thousands of borrowers* sign up to deals typically lasting anywhere between two and five years - but should they wish to free up additional capital before the deal is up, some may face horrendous fees from their current mortgage lender if they need to switch," said Click chief executive Steve Teague.

"Arranging a secured loan can make better financial sense for certain individuals needing to borrow more money - they won't face any penalties or lose their mortgage deals," added Teague. "These can be people whose circumstances have changed and where additional funds cannot be provided by the current lender.

"And with the recent encouragement for lenders to launch 25 year fixed deals, secured loans are set to be the best route for those clients wanting to bank their property's capital without losing their shirts on the mortgage deals," he said.

The added bonus of secured loans is that they allow borrowers to arrange higher sums, in the region of £30,000 to over £100,000 - whereas most unsecured loans will only allow the borrower up to £25,000.

And those with impaired credit histories can also qualify - the money can be delivered to the client as quickly as two weeks with a typical payout time of four weeks.

"Secured loans can also save the borrower a sum of money in the longer term. For example, a client borrowing £25k over 25 years who re-mortgages would be landed with a total amount payable of £49,197 - based on borrowing at a fixed rate of 6.19 per cent.

"However, that same £25k borrowed over 10 years as a secured loan would equate to a total amount payable of £36,398 based on 8.0% APR - this gives a saving of nearly £13,000 over the loan period," he said.

And from a mortgage broker's point of view, pointing clients in the direction of secured loans makes sense in many cases.

"It's a good deal for the broker in terms of the commission we pay - which is among the best in the market - and a good deal for the client, as they get their money more quickly and without the need for expensive early repayment fees and the like," said Teague.

"Secured loans can be arranged from as little as 6.5 per cent, depending on the client's credit score, amount of loan and length of time the loan is taken over. Compare this with the cost of taking out a standard variable rate mortgage at current rates, arrangement fees and exit penalties to get out of the old deal, and it can be a win-win situation for broker and client alike," he added.

Ends

* According to Council of Mortgage Lenders, almost 200,000 new and re-mortgage loans were taken out in June 2007

Consumer enquiries: www.click.co.uk / 01252 728800

Press enquiries:

Steve Teague, Managing Director
Click
01252 728886
s.teague@click.co.uk

Editor's notes:

Click, based in Farnham, Surrey, is one of the fastest growing independent secured loans and life cover specialists in the UK.

Originally branded Click Group, the company was founded in 2000 by its Managing Director, Steve Teague.

The current structure of the business was introduced in 2001 with the formation of its life insurance and loans brokerages. Since then, the company has grown to employ over 230 staff and has recently branded under the name Click.

Now Click is one of the biggest players in the independent loans and life brokerage sector, and continues to expand with a strong, top drawer management team.

Click has ambitious plans for imminent growth and is on course to become the UK's number one online financial services firms by 2010.