Secured lending shows surge in monthly lending
09 April 2015
Secured lending shows surge in monthly lending
Total lent year to date £122,612,455
- Monthly lending up 10.5% on January 2015
- Secured lending in February reaches £64,375,673
- February records 35.8% monthly annual increase
These figures represent an increase of 10.5% on the previous month and mark the 40th consecutive monthly year on year increase.
February’s figures are impressive and demonstrate just how quickly the secured loan industry is growing, as after two months of 2015 we’ve surpassed the total amount lent in the first quarter of 2013. In fact the gross lending figures for January and February 2015 are 18% higher than Q1 of 2013!
Monthly lending figures of £64,375,673 represent the second highest single months’ lending since October 2008 and it should be noted that was in one of the shortest working months of the year.
Matt Tristram, Co-Founder & Director of Loans Warehouse commented:
It’s all about the fixed rates…
Whilst a fixed rate period of lending has been common place in the mortgage market for many years, it’s been surprisingly rare over the years in the second charge industry.
However, in the last 12 months many lenders have made steps to change that. Last month Prestige Personal Finance, Optimum Credit and Nemo Personal Finance announced fixed rate options were being added to their secured lending ranges, joining Paragon Personal Finance, Shawbrook Bank, Precise Mortgages Secured Loans, Central Trust, Blemain Finance & Clearly Loans who all have offered fixed rate options for some time.
The lowest fixed rate available is offered by Prestige Finance, part of One Savings Bank, at 5.39% fixed for 2 years.
With the Financial Conduct Authority taking over regulation of the second charge industry, it is noticeable that the changes lenders are making are drawing us more in line with first charge products.
Fixed rates, larger loan sizes and changing income calculations are all indicating that as a sector we are preparing for the undoubtedly interesting times that lie ahead.
It’s not all about that though. Lenders making changes to their product offerings, such as the introduction of new fixed rates and Buy-to-Let options, is a demonstration that they are listening to what consumers want and where they see future areas of growth.
Final Thought:
February’s figures are a clear indication that the growth in secured lending continues to remain strong, even though the mortgage market is slowing, secured lending is becoming an alternative for more and more clients.
