Secured lending drops 13% in August

Loans Warehouse’s latest secured loans index shows total lending in August hit £40m which represents a drop of 13.43 per cent from the previous month’s £45m.

But Loans Warehouse says that it takes total lending for 2013 so far to £314m and that by the middle of September secured lending so far will have surpassed the total amount lent in 2012.

And despite this month-on-month decrease, August figures do show a year-on-year monthly increase of 15.60 per cent compared to August 2012 when lending reached £34m.

Former CML director general and new strategic advisor at Loans Warehouse Michael Coogan also believes the market is primed to grow further.

Coogan says: “With rates starting below six per cent, borrowers are increasingly recognising that their financial needs can still be met when they cannot remortgage or get a further advance from their mortgage lender.

“FCA regulation of consumer credit starts next spring. The second charge market’s reputation will be enhanced by the move away from the Office of Fair Trading and it will be even easier for advisers and second charge brokers to work in tandem.”

Loans Warehouse and Clearly Loans director and co-founder Matt Tristram says: “It’s been a very interesting month for the future of secured lending, with the addition of big name individuals, one of the industry’s founders celebrating their 40th anniversary and lenders continuing to build their buy-to-let offering.”