Secured loans increase 21% to reach £31.6m

Secured loan lending topped £31.6m in February, an increase of 21 per cent on the £26m figure recorded in February 2012.

February’s lending figure is also 5 per cent up on the £30.1m recorded for January and is the largest monthly lending figure since November, when lenders advanced £34.3m to customers.

The latest figures from Loans Warehouse show the second charge industry has experienced its sixteenth consecutive month of year-on-year growth.

Loans Warehouse joint managing director Matt Tristram says: “The figures each month are speaking for themselves. The industry is now consistently completing over £30m each month as borrowers continue to benefit from cheaper rates and more diverse options.

“The market continues to become more mainstream, with the introduction of historic low rates of 5.59 per cent (Nemo Personal Finance), early repayment notice period of 28 days with just a £195 discharge fee and LTV’s up to 95 per cent (both Shawbrook Bank), the second charge market is attracting the attention of some of the biggest names in the industry.”

If I Were You chief executive Rob Clifford says: “The 21 per cent year on year hike is clearly in sharp contrast to a very gradual recovery in other parts of the lending sector – good news for consumers and the industry. Intermediaries need to continue the excellent work of raising the profile, and appropriateness, of secured loans to relevant consumers.”

Earlier this month, Prestige Finance launched its first ever range of prime secured loans, with rates starting from 6.75 per cent up to 70 per cent loan-to-value for both employed and self-employed borrowers, with a maximum loan size of £60,000.