There was yet another blow for the already hard pressed secured loan industry with the news announced in the last few days that Link Loans was ceasing trading. This was due to their inability to obtain any further funding.
Their parent company Link Lending had been forced to shut down only a few days earlier because their funder Barclays Bank were unwilling to forward any more funds. This going into administation of Link Lending obviously suggested that Link Loans could not be in a strong position themselves.
Nobody could really understand how Link Loans could expect to be funded when Barclays refused to fund their parent company and had forced them into administaion. It looked right away that Link Loans were also almost certain to fall.
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.
When a secured loan broker receives a request from a client to arrange a secured loan for them, the secured loan broker, through his knowledge of the secured loan lenders criteria, knows exactly which secured loan lender fits his clients needs and circumstances.Therefore before even placing the secured loan application with the most suitable lender he knows that the application will reach fruition providing all the facts supplied by the customer are accurate.
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.
Secured loan brokers had to do a credit check for all the prospective Link Loan customers followed by a Land Registery check at the end of which Link Loans had to be provided with all this information. Link could not approve this or otherwise, but they forwarded the facts to their funders to approve the secured loan application.
When their approval was granted the secured loan broker would be notified that they could proceed with the application.
Other secured loan lenders had the authority to approve secured loan applications themselves.
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categories: secured loans,homeowner loans,mortgages,remortgages,refinancing,property