According to the latest Secured Loan Index from Loans Warehouse, these figures represent an increase of 14.1% on December 2014 and mark the 39th consecutive monthly year on year increase.
Additionally, figures from the Finance & Leasing Association last month found that the number of secured loan repossessions was at its lowest level for at least 6 years in 2014 with a total of 414. The 79 in the last quarter of 2014 was down 35.8% compared with the last quarter of 2013.
Fiona Hoyle, Head of Consumer Finance at the FLA, confirmed that "the continued fall in reposessions is due in no small part to the commitment of second charge mortgage lenders to helping customers deal with financial difficulty."
Lenders' appetite to lend has continued and the competition for rates has seen further enhancements to criteria. Masthaven Secured Loans, Blemain Finance and Central Trust have all reduced rates again, with headline rates now 7.60%, 7.63% and 9.10% respectively. The latest new entrant to the market, Paragon Personal Finance, have reduced their lending rates announced in October 2014 and introduced fixed rate products.
Evolution Money have also released their first BTL range with rates from 12.7% on a 90% LTV.
Matt Tristram, Co-Founder & Director of Loans Warehouse, comments:
"It’s fair to say that the secured loan industry has picked up where it left off at the end of 2014, with continued monthly growth reconfirming that as an industry we continue on the right path."
Stuart Aitken, Chief Operating Officer – Masthaven Secured Loans, said:
“We are cautiously optimistic about market growth in 2015. The second mortgage market should do better than the CML’s predicted 7% growth for firsts, which is partly affected by the high street’s over-zealous response to MMR, a mistake that second mortgage lenders will surely not repeat.
"Added to this, whilst bank base will be held for most, if not all of 2015 due to low CPI and global growth, a more fluid remortgage and second charge market will almost certainly kick in during the second half of the year as borrowers sense a rate rise on the horizon.
"Lastly, the fact that a second charge must be considered for any existing customer looking to borrow additional funds will inevitably boost the secured loan market.”
Maeve Ward, Sales & Operations Director - Shawbrook Bank Limited, commented:
“2015 has started with a bang and is shaping up to be one of the most exciting if not challenging years, with March 21st 2016 getting closer by the day! Landing slots have arrived and brokers have started to apply for authorisation with some I am delighted to say already out the other side fully authorised and no longer under interim permissions.
"Change brings opportunity and should be embraced, but what is key is that we all work together to make the transition as seamless as possible, ensuring that the customer remains at the heart of everything we do."
Paul Stringer, Loans & Mortgages Director - Norton Finance, concluded:
"Throughout 2014 lenders have been continually improving their criteria and rates. Some of these changes include higher loan to value ratios, larger loan sizes, more flexibility for adverse customers and rates from 4.95%.
“These improvements have resulted in conversion rates for the secured loan industry improving tremendously, almost back to pre-2008 levels. There has never been a better time to consider a secured loan owing to the vast range of options now available. With low rates, low redemption penalties and secured loans now being an FCA regulated product, customers can be sure of receiving a great value loan product and of being treated fairly throughout the loan process.”
