Freedom Finance’s year-end results for financial year 2013 also revealed a 40% increase in profits compared to the previous year.
Nicola Georgiou, managing director of Freedom Finance, said: “Lenders are starting to offer better options for borrowers, which is leading to a significant uplift in consumer appetite for loan products.
“We see this as an indication that consumer confidence is growing and that the economy is starting to show signs of recovery.”
However Georgiou warned that borrowers need to be wary of the pitfalls surrounding lower rate lending products.
She said: “Simply applying for the lowest rate loan on a traditional comparison site can damage a credit score so applicants should make sure they use ‘soft search’ sites, which find the best rate for their individual circumstances without having a detrimental impact of their credit rating.”