Lending for the secured loan market increased by nearly 50 per cent in August compared with the same period in 2011.
Figures from Loans Warehouse show that second charge lending increased from £24m in August 2011 to £34.6m in August 2012, representing the largest annual growth rate in over three years.
Loans Warehouse joint director Matt Tristram says: “According to recent reports, although it has been five years since the Northern Rock crisis, it has never been harder to get a mortgage. This distinct lack of appetite for risk in the first charge sector is forcing borrowers to seek finance elsewhere and these figures make it clear exactly where they are looking!”
Gross lending totalled £34.6m in August, a 6.6 per cent rise from the £32.3m lent in July, representing the second consecutive month where lending has exceeded 2009 figures.
Money.co.uk managing director Chris Morling says: “With mortgage lending still at a comparative standstill and borrowers’ options somewhat limited, it’s reassuring to see that the secured loan market is not only becoming a viable alternative for homeowners looking to borrow, but also a more affordable one too.”