Secured lending is forecast to hit £1bn in just four years

The secured lending market could hit £1bn by 2016, according to Enterprise Finance.

In this week’s Bridgingwatch column, Danny Waters, chief executive officer of Enterprise Finance, says a rise in the number of lenders offering secured loans will lift the market from its current gross lending of £360m.

Waters says at the peak of the market in 2007, it was on target to complete between £6bn and £7bn per year.

But he adds: “Our internal forecasts suggest the value of secured lending will pass £1bn by 2016. This will be fuelled by an improving macro-economic climate and increasing liquidity and appetite from existing firms and new entrants.”

He believes new entrants will emerge from those lenders already operating in the mortgage and bridging space.