A number of sources have shown a sharp increase in lending figures compared to last year, indicating a new era for secured loans.
These figures clearly demonstrate that the increasingly restrictive criteria of high street mortgage lenders is encouraging consumers to look elsewhere for finance and subsequently raising awareness of the secured loans market.
Of course the market is still very small when compared to the rest of the personal finance industry, but it is great to see specialist lending starting to become more mainstream.
What’s important however is that we don’t rest on our laurels and simply assume this growth will continue at the same pace. As more people find it difficult to move home or remortgage their properties, it islikely that they will consider a secured loan. But as an industry, we must ensure that we continue to develop the products and services that today’s consumers need.
By having flexible criteria and considering each case on an individual basis – focusing on affordability and sustainability rather just salary for example – we can continue to fill the ever-expanding funding gap that that the high street is creating.