Shawbrook increases max loan LTVs but is there a better option?

We have predicted that there would be more growth in the secured market this year and this would be matched by more innovation from lenders with new products, higher LTVs, higher loan amounts and lower interest rates. I have a feeling that's not the last time this year (or month?) I'll open a Blog post with those words. Shawbrook bank - consistently one of the most innovative and progressive secured loan lenders in the market - have revised their product range and have announced, among other changes, that they will now lend up to 95% LTV (max loan £20,000). Now, the rates of these secured loans don't come cheap with the standard rate for a loan at this LTV being 21.9% - and this is before you add brokerage fees so the overall APR will actually be higher. So while this innovation is to be welcomed, we can't help but think that if a client has good enough credit and affordability to qualify for such a loan, surely they might be better served getting an Unsecured loan from one of our peer-to-peer lenders instead. An unsecured peer to peer loan is available up to £25,000 and APRs rarely go above 9.9% (though this depends on your credit). In addition, you don't need to worry about equity levels as they are available to both Tenants and Homeowners alike. Geographic location is not a problem either as these loans are available all over the UK including Northern Ireland. You have to have clean credit (just like with the Shawbrook loan) with no CCJs or Defaults and you must earn enough to meet affordability requirements but pension income is also accepted as the max age allowable is 72 when applying (minimum age is 24). So, looking at all the criteria it seems to us that compared to a Shawbrook secured loan a Peer-to-peer Unsecured loan is:

• Available in a larger amount
• Indifferent to LTVs as even Tenants are acceptable
• Indifferent to geographic location as the entire UK is acceptable (even Northern Ireland)
• Faster to process (typically 48 hours)
• Cheaper for the client

Doesn't this seem like a better idea? And if you are an Introducer with a valid CCL you can also refer clients and earn a commission on each deal.