UK Records the Highest January Total For Six Years as Secured Lending Marches On
Secured lending levels reached £58.2m in January, an amount that has not been seen for six years.
Finance Experts at Loan.co.uk, secured loan specialists says that this is a demonstration that the secured loan industry has picked up from where it left off at the end of 2014 and is also an early indication that the industry is ready to consolidate on the gains recorded last year.
There is an improving appetite to lend amongst lenders and the competition for rates has also brought about further improvements in the lending criteria.
Following what was a successful 12 months in 2014, there was keen expectations regarding what 2015 holds for the secured lending sector. The numbers seen in January shows that the market is willing to tow the same lines we saw in the last year.
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More lenders are reducing rates with current headline rates now standing at 7.60%, 7.63% and 9.10% respectively.
Experts also believe that the optimism surrounding the market will weather the storm expected to be generated when the FCA regulation for the second charge market comes in on 21st March 2016.
It is expected that the market will grow to a volume of £80m per calendar month by the end of 2015. The market will remain shy of the £100m a month threshold due to the MCD. The figure would have been breached without any changes to regulations.
However, uncertainty as a result of the elections and the possibility of an increase in interest rates may also have additional impact on the figures that will be recorded throughout this year. The year has started on a right note. It may end as the most exciting and yet most challenging year in the history of the sector.
Regardless of what the new regulations bring to the table, customers will always remain at the heart of the efforts of lending businesses and marketing will be focused on making more prospects see the allure of the secured lending sector especially at a time when getting high street loans have proven to be a rather difficult proposition.