Two new lenders give secured lending a boost in June

According to data from the latest Secured Loan Index, the amount lent between April & June 2013 stands at £127m which is the best three month lending period since July to September 2009.

Related topics:  Specialist Lending
Amy Loddington
18th July 2013
Specialist Lending cash coins increase grow money growth

In fact, to find a three month period that surpasses the latest quarter, you have to go all the way back to Q2 of 2008.

June sees the third month running that second charge lending has surpassed £40,000,000 and cements a shift in lending levels as the industry is looking to hit the £50,000,000 benchmark.

Secured loan lending in June stood at £41.9m, a small drop of £1.79m on May’s figure.

The annual increase in second charge lending was 49.3% higher than in the same period last year and an incredible 20th consecutive month of year on year monthly growth.

Matt Tristram, Director of Loans Warehouse & Co-Founder of Clearly Loans comments:

"I would like to start by paying my respects and acknowledging an outstanding contribution to specialist lending, to David Johnson, who sadly passed away last week.

"Whilst I don’t confess to be as close to David as many in our industry, I know I wouldn’t be sitting at my computer talking about second charge lending if it wasn’t for his influence.

"I’ve always appreciated the kindness and generosity of his time David showed to Sam and I during our time at Loans Warehouse. Our thoughts go to David’s family and closest friends at this time.

David’s family have asked that rather than floral tributes, there is a website in his memory where donations to Cancer Research can be made.

It was predicted that, with increasing interest in the secured loan sector, new lenders would launch and one of the first to do so was TFS Loan Processing.

Ray Bohringer at TFS was asked what he thought they brought to the market:

"Whilst we have many USPs, I would say the most attractive to the broker community are no restriction on first lender, minimum property val 70k, acceptance of an equitable charge and of course the fact that we ignore historical adverse. Our range is geared to offer new innovation that will impact a Brokers bottom line not just to offer an alternative."

The second new entrant this month arrived on 3rd July in the form of Clearly Loans, set up by former investment banker Garry Monaghan and Loans Warehouse duo Sam Busfield & Matt Tristram.

 

 

 

Garry Monaghan said:

"We set up Clearly Loans to address the lack of supply in some areas in a growing secured loans market. We hope that our range of products will fill some of the gaps, we will be offering loans on LTVss up to 85%, higher equity on ex-council flats and making the process for self-employed applicants easier.

"For a lender, the secured loans market offers attractive returns at acceptable levels of risk. We believe that a lot of investors will be interested in the yields offered by secured loans, in these low interest rate times. Finally, the reputation of the market is clean, a very important consideration in the current regulatory environment."

Matt Tristram concluded:

"Over the past few months its been well documented that many of the biggest networks in the UK have been reviewing their specialist lending options. As the awareness of the value of secured loans continues to rise; the latest network to do exactly this is Intrinsic, who have become the first mortgage network to gain access to Clearly Loans."

Emma Hollingworth, mortgage sales director of Intrinsic, said:

"A straightforward mortgage case is becoming a bit of an endangered species which is why Intrinsic is keen to ensure our members have as many alternatives to hand as well as the ability to secure a consistent income stream. We’re delighted to partner with Loans Warehouse along with Brightstar Financial as part of our overall Specialist Lending panel."

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