Datamonitor, the independent market analyst, has revealed that secured lending in the UK is set to calm over the next five years.
Maya Imberg, financial services analyst at Datamonitor, says: “As the UKs housing market slows to a soft landing, the rapid growth rates the secured lending market has enjoyed over the last five years are set to cool.”
From 2005 to 200, Datamonitor predicts gross advances to grow at an average of just 5.3% a year, to reach 35.4bn in 2009, compared to the growth of 50% a year over the last five years.
Datamonitor found that last year gross advances for secured personal loans and further advances amounted to 32.6bn, up from 28.1bn in 2003.
Datamonitor also predicts that as more mainstream lenders become involved, smaller specialist lenders will find it more difficult to compete on equal terms.