Secured loans drop by half in last year
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Secured loans have dropped by over half in the last year, research from the Finance and Leasing Association reveals.
Comparing the 12 months leading up to July 2010 to the 12 months leading up to July 2009 the market had dropped by 51% and is now worth £315m.
There was £25m of second mortgages in July 2010, which is 11% lower than in July 2009.
Direct unsecured loans also fell by 42% in the same period, worth £2.2bn and in July 2010 the market made £195m of loans.
Fiona Hoyle, head of consumer finance, says the consumer credit market remains subdued and the focus is on regulation.
She adds: “There are new rules on responsible lending, as well for credit and store cards, allowing customers to take more control over their credit limits and what happens when interest rates change.
“In addition to this, the Finance and Leasing Association will be updating its long-established Lending Code to take account of the new changes.”
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