Better choice with Freedom loan system

Freedom Finance has launched a new loan broking system aimed at providing intermediaries with more choice in the way they transact secured loans.

The service, which has been tested by 150 brokers throughout the UK along with appointed representatives of the Mortgage Next network, allows advisers to compare and contrast products from a panel of lenders.

It includes an online quotation and submission service, online referrals, case tracking and an option to arrange payment protection insurance (PPI) for clients.

This development was launched in response to research from Freedom Finance in which brokers expressed concern about a lack of product choice, the way client applications are handled and the inability to recommend alternative PPI products to their clients, especially in light of the recent PPI scandals.

Nick Chadbourne, divisional manager for lead-generation at Freedom Finance, said the service could reassure many brokers who are nervous about transacting secured loans business. He said advisers will be able to choose whether to retain full control of the client relationship themselves or allow Freedom to take ownership of the process. He added: "There is an element of the unknown about secured loans, but this system can help clients because it does not force brokers to relinquish control of their client relationship."

Steve Teague, chief executive of Click, agreed advisers were sometimes uncomfortable with the secured loans process but they needed to address it. He said: "With treating customers fairly, brokers now need to make sure they offer everything they can to a client. Making secured loans more mainstream is good."

Tony Sutton, chief executive of Independent Specialist Finance, doubted whether the option of controlling the process would help brokers. He commented: "My experience is many IFAs are not used to secured loans and are uncomfortable with the application process because they are unfamiliar with it. The option for them to control the process may not be an advantage."