Secured lending enjoyed its 36th month of continuous growth in November 2014, according to the Secured Loans Index.
The annual increase of 12.4 per cent in November was the best recorded for this month since 2007 with total lending for 2014 now exceeding the previous year level by nearly £100,000,000.
The market for secured loans shrank by 13 per cent on a monthly basis with a total of £53,228,739 lent, as compared to the record-high amount of £65,537,155 in October.
Figures for December are also expected to be good despite the fewer working days and as a whole the industry is set to complete its best year since 2008, Matt Tristram, director of secured loans brokerage Loans Warehouse, who compiles the Secured Loans Index, said.
The start of 2015 will be exciting for all industry players, as secured lending is becoming more popular thanks to the lenders’ efforts towards automation and offer more and cheaper products, he said.
In November, Blemain Finance, Central Trust and Nemo Personal Finance have cut their rates. Blemain and Central Trust also simplified criteria for their loans, while Nemo launched two new large-loan plans and expanded the availability of AVMs. There were two new plans from Shawbrook Bank as well, the Super Platinum and Super Prime. Paragon Personal Finance on their part entered the Scottish sector market.
With the improvements in products and technology, the industry is on a good track to reach monthly lending amounts of £200,000,000, a figure that has already been suggested as a potential goal for the market, Tristram said.
Secured loans are also known as second charge mortgages and are loans taken out by mortgage holders secured against their property.
