A 24% rise in secured loan lending in February has been attributed to mortgage lenders tightening their criteria.
Secured lending of £24m was carried out in February, up from £19m in February 2011, figures from the Finance & Leasing Association show.
In the three months to February 2012 £67m in secured loans was taken out, compared with £58m in the same three months in 2011.
Steve Walker, managing director of Promise Solutions, says the firm has seen a larger than normal seasonal increase in secured loan requests because of the situation in the mortgage market.
He says: “Brokers are telling us this is due to mortgage lenders tightening criteria. “They are finding more favourable secured loan terms, particularly with regard to income multiples, interest-only, older applicants, self-employed income and adverse credit.”
Walker also says March was its busiest month in two years for broker-introduced completions.
Fiona Hoyle, head of consumer finance at the FLA, says: “These figures show that some consumers are taking advantage of the affordable credit options available to them.”