Yesterday, we published the July edition of the Secured Loan Index and the results were encouraging to say the least. Not only did secured loan lending in July advance 22%- the biggest monthly increase in lending since November 2011, July lending also exceeded £30m for the first time since December 2009.
Another trend we witnessed in July was considerable growth in lending to credit impaired borrowers. July saw Shawbrook enhance its secured loan product offering to self-employed borrowers with impaired credit, and the influence this has had on the industry is apparent as the lenders that are traditionally active in this part of the market witnessed an 18% surge in their lending figures from the previous month.
We all expected some progressive results this month, especially when you consider the shorter June, but to see the figures escalate to these highs is exciting. These results act as further proof that the secured loan market is continuing to stabilise and grow. Lender’s appetites are getting healthier, providing a giant boost to the industry as a result.
Arguably, there are many reasons why we are seeing a real change in attitude toward the second charge market from both brokers and borrowers alike. Not only has there been a rise in awareness of the benefits of secured loans but with mortgage lenders continuing to be reluctant, they are proving to be a sustainable option to remortgaging too.
Considering these factors, advisers are now looking elsewhere for refinancing options and due to low loan rates and low redemptions, they are now returning to the market and recommending secured loans as a viable alternative to their clients.
