Secured Loans, Home Loans & Bad Credit Loans   Secured Loan News: The Council of Mortgage Lenders (CML) has lashed out at government reforms in the secured loans market, claiming that the UK is teetering on the brink of a regulatory nightmare. The CML’s annual report highlighted ongoing discussions with Treasury ministers on the dangers of dual regulation from changing the 1974 Consumer Credit Act. CML members believe there is a risk that a swathe of unregulated loan agreements, from before the introduction of mortgage regulation, will be included in the new consumer credit legislation. The CML’s annual report said: “[The changes] would result in lenders having to work within two different regulatory frameworks – the Consumer Credit Act and the Financial Services and Markets Act 2000.” CML members have also joined the campaign to get consumers to take more responsibility for their actions and have raised concerns about the principle of ‘unfair relationship.’ ‘Unfair relationship’ is a principle that comes under scrutiny when a borrower thinks he has been treated unfairly. Examples could include being the victim of excessive charges or being mis-sold a product. However, the CML is now calling on the government to do more to define this principle so that the consumer takes some responsibility for signing a contract for a product in the first place. The report said: “CML members are concerned that in the event of a claim of unfairness, the burden of proof that a firm has acted fairly, would be on the lender, rather than the borrower making the allegation. “We are hopeful, however, that it will recognise lenders’ concerns about retrospective application of unfair relationships.” Secured lending soars but consumer credit remains weak Secured lending remains strong despite a weak consumer credit market, according to the British Bankers Association. The latest figure for secured loans and mortgages ows borrowing up by £5.4bn in March 2006. This compares with a £4.7bn rise in February 2006 and an average of £4.9bn over the last six months. Providers saw the popularity of unsecured loans and overdrafts fall by £0.1bn and credit cards by £0.2bn. David Dooks, director of statistics for the British Bankers Association, said consumers are putting more thought into their lending needs. “The contrast between stronger mortgage lending and net repayments of unsecured borrowing suggest that ndividuals are optimistic about the housing market,” he explained. Financial advisers and brokers have offered a variety of reasons for the consumer behaviour which has seen borrowing against property continue to soar. Michelle Moran, mortgage broker at Plan Invest Group, said there has been a steady stream of individuals that are looking to borrow against their property. “A lot of this comes down to property prices rocketing over the past few years. Plan Invest has had a large amount of clients releasing equity in their house,” she explained.“What many consumers have not considered is that the amount still has to be repaid, whether it is secured or unsecured borrowing. However, economists are predicting that interest rates may well come down a quarter in the next few months.” The BBA’s research was conducted by the Major British Bankers Group which includes Alliance and Leicester, North Rock, HBoS, RBS group and Bradford and Bingley.