Sponsored Post 

Over the last few months, a growing number of leading finance brokers have voiced their opinions on the subject of some of their unregulated counterparts casting a dark cloud over the borrowing market as a whole.  In the not too distant past, many bridging loan providers and similar firms offering advice and property financing products across the entire service sector have not been held as accountable for their actions as they should be; or if they have then it has only been with very little consequential effect as a result of their offending behaviour.

However, it looks like this is finally set to change, as the Financial Conduct Authority has announced that it is now firmly setting its sights on those who are operating beyond the scope of authorisation or regulation. A number of recently issued statements from the FCA have suggested that the authority itself is now taking a much more aggressive stand in terms of identifying and pursuing those who are offering consumers advice that is irresponsible or not within their genuine interests.

Brokers, Lenders and Borrowers Need to Beware

"A large percentage of the problems we have witnessed in the industry, from the crash of 2008 onward, have been caused by regulated brokers participating in activities that are outside the ‘regulatory perimeter'. However, our resources are limited and it is therefore essential that we use them as effectively as possible in order to maximize our impact. If our objectives are endangered by unregulated bodies then we shall be forced to operate outside the perimeter wherever necessary." - FCA (Financial Conduct Authority)

According to the FCA, a growing number of consumers and commercial borrowers are being painted into a corner with some of the more unscrupulous and irresponsible lending practices that are going on - particularly where unauthorised and unregulated financial services such as bridging loans are concerned.  The basic advice is that borrowers should avoid dealing with such brokers entirely, especially if they are not FCA endorsed, regulated and authorised.

Avoiding the Risks

Each time a residential or commercial borrower uses an unregulated financial service provider, they are needlessly putting themselves at risk. Although the FCA and other leading regulatory bodies have already taken several steps to warn consumers of the impending dangers of unregulated borrowing, it seems that the main share of the advice is quite simply not being listened to. With this in mind, the FCA has repeatedly voiced that it is now set to deal with the unauthorised lenders and brokers with a much firmer hand with the intention of wiping them out entirely and ensuring their demise.

One of the UK's leading bridging loan specialists and secured finance providers has recently spoken out in support of the FCA's decision to clamp down on irresponsible lending facilities.  As a fully authorised and FCA approved broker and principle lender, the team at UK Property Finance know just how unfitting and potentially hazardous unregulated borrowing advice can be - above all when products are secured against people's homes or businesses. 

If a deal seems too good to be true then the chances are that it probably is.  Advising their customers to avoid unregulated lenders like the plague, UK Property Finance always recommends that you do your homework and check the credentials of the broker you are working with before ever taking out a second charges loan or, indeed, any other secured product. https://www.bridgingloans.co.uk