If there is any doubt of the industry’s sustained growth, November marks the 25th month in succession where the industry has reported a year on year increase – and lending this year is already 43% higher than in 2012.
In fact November’s figures show the industry has already lent more in Q4 of 2013, than the whole of Q4 2012.
Matt Tristram, Co-Founder & Director of Loans Warehouse & Clearly Loans comments:
“In a month that, when compared to recent had very little change, there were still lots of positives for the industry to reflect on.”
The start of December saw Precise Mortgages roll out their new secured loan product range to a select panel of secured loan specialists, targeting brokers who have strong relationships with the UK mortgage networks.
Last week news also leaked out that both United Trust Bank & Aldermore are looking to enter the second charge mortgage market next year.
Harley Kagan, managing director of United Trust Bank, said:
“We continually explore options for extending the range of products suitable for the intermediary market and one of those is the potential to offer second charge loans. It is a service which would complement our existing product range.”
One of the most influential supporters of the second charge market, RBS, discussed their thoughts on a year of recovery and what 2014 may bring with Loans Warehouse.
Stuart Mogg, Associate Director, Financial Institutions UK at RBS, said:
“Following on from an impressive year, and a strong November, 2013 has clearly been the year that the secured loans market grew in confidence and found not only strong demand from consumers but an improvement in funding conditions to allow that demand to be fulfilled. There does appear to be structural support to the growth in demand and we would hope to see that support remain in place for the next couple of years”
Nick Parkhouse, Director, Financial Institutions UK at RBS, said:
“2014 poses in equal measure a number of opportunities and challenges for the market, especially around competition (existing players and new), regulation and as some players get to critical mass, funding may come back as a consideration, i.e. will the securitisation markets be available. RBS has been an active participant and supporter of the market in 2013 and are excited by the continued opportunities to develop further our conversations with various market participants going into 2014.”
The Secured Loans Index predicts that next year will be the biggest yet for secured loans, with FCA regulation from April and at least four new lenders stating their intention to launch.
