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Banks and building societies tighten unsecured lending


Building societies and banks are reducing unsecured lending to consumers, according to the Bank of England.

The Bank’s latest credit conditions survey shows lenders’ expectations for unsecured lending volumes in Q3 fell 13 per cent.

The central bank says lenders “expected a significant decrease in Q4” of 30 per cent, the biggest drop since 2008.

Banks and building societies expected the supply of mortgages and business loans to remain stable.

The tightening of unsecured lending capacity could lead to an uptake in second charge mortgages, according to packager Thistle Finance.

 A Thistle statement says: “With many households now seeking to consolidate the debts they have taken on at a time of stubbornly high inflation, many are increasingly turning to secured loans. These offer them a way to bring down their debt over a longer time period and at a more affordable rate.”

Thistle Finance managing director Mark Dyason says: “There has been a lot of talk in the broker community over the past year about the opportunity surrounding the seconds market and this latest data from Threadneedle Street suggests it is not misplaced.”


Paragon buys unsecured loan book

The Paragon Group of Companies has acquired further unsecured consumer loans through its Idem Capital Securities subsidiary from the Royal Bank of Scotland. The deal, worth £38,000, is being financed from Paragon’s cash reserves and represents the value at which the acquired loans will be taken on to the group’s balance sheet. Opportunities to make […]

Auto enrolment – so far so good?

Jamie Clark – Business Development Manager The recent report from the Pensions Policy Institute demonstrates the sheer scale of auto-enrolment so far and what we can expect in the future. We’ve pulled out the key information to save you reading the full report. Auto enrolment in numbers Sources: Pensions Policy Institute, The Future Book: Unravelling […]


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