We've all seen the negative news flying around the media and we decided it was time to put all these horror stories to bed.
Something had to be done to put people’s minds at ease - show them that secured loans have come on a long way since 2007 and that there is ample evidence of responsible lending firmly in place.
So yesterday, with the help of our lenders, we launched the UK's first Secured Loan Index.
Whilst the FLA produces figures on a monthly basis, these are often part of a larger focus and don’t provide a complete picture of the market.
We wanted to produce an index that not only accurately represented the secured loan arena but one which proved that despite the current financial climate, the sector is witnessing significant change. As well as this, if we could open up the market to advisers who have never before considered a secured loan as a refinancing option for their client- well, that would be an added bonus.
The results showed some positive trends. Lending for the first six months of 2012 reached £150m, a 12% increase on the same period in 2011 and gross lending in the second quarter advanced to £76m, a 10% increase on the same period last year, reflecting a significant increase in both lending and borrowing appetite.
Increased availability and improved criteria has never been more apparent than today. In particular was Nemo’s announcement last month to open up its products by launching a One Unit Plan, a product that hasn’t been offered by them since before the credit crunch. Nemo have predicted that the introduction of these changes will encourage market growth, with Sam Marshall predicting an additional £4m -£5.5m per month of new origination which based on current statistics represents a 20% growth opportunity for the market.
The index has proved that secured loans are still here and evidentially still thriving.
