Yet Another Secured Loan Lender Bites The Dust.

The secured loans industry has seen the demise of yet anther secured loan lender as Link Loans announced it’s closure a few days ago.This is the most recent in a series of secured loan lenders who have suffered a similar fate.

Only days prior to this, the secured loans industry in general felt that Link Loans was bound to be in a precarious situation as their parent company Link Lending had gone into administation due to the refusal of the Bank to continue funding them.

For a very short time it did appear that Link Loans were confident that they would continue to be funded. Most people in the secured loans industry did however feel that funding was unlikely and that Link Loans were almost certainly going to go down the same route as their parent company.

Link Loans was a fairly recent entrant into the UK secured loans industry. They obtained their business from secured loans brokers and their method of operating was different from that of other secured loan lenders.

Secured loan brokers, with their extensive understanding of each individual secured loan lender’s criteria know which lender is most suitable for each individual customer’s requirements. This means that before forwarding a secured loan application to any given secured loan lender the broker knows that the application for a secured loan will be acceptable and that his customer will be granted the secured loan funds, as long as all information supplied by the applicant is true.

Link Loans worked in a different way from other secured loan lenders although like the rest of the lenders they did give the secured loan broker underwriting guidelines to follow.

With Link Loans this was not the case. A secured loan broker had to first of all do a credit check, and also had to approach the land registry to do a land search of the customer’s property. This then had to be faxed or emailed to Link Loans who then had to approach their funders to seek approval for the secured loan.

When Link Loans heard back from their funders, the secured loan broker was told if their application for a secured loan was acceptable or not.

They were the only secured loan lender who appeared not to have the authority to approve a secured loan application themselves.

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categories: secured loans,homeowner loans,mortgages,remortgages,refinancing,property