It said secured loan lending in July advanced to £32.3m, representing a 22% increase on the previous month and an increase of 16% compared with a year earlier.
This was the biggest monthly increase in lending since November 2011, during which time lenders have dropped rates and opened up their criteria in order to attract new customers.
New data taken directly from secured loan lenders shows evidence of increased lending to credit impaired borrowers in July; lenders that are traditionally active in this part of the market witnessed an 18% increase in their lending figures from the previous month.
Matt Tristram, joint managing director of Loans Warehouse, said: “We all expected a slight increase in July after the Jubilee Bank Holidays in June but to see these figures is impressive.”
Tristram said Shawbrook Bank enhances its secured loan product offering to those with weaker credit in July – contributing to the uplift.
“This shift in focus is further evidence that lenders are making a conscious effort to open up their criteria and this month’s results reflect the influence that these more specialist lenders have had on the market since entering,” he added.
David Johnson, managing director of secured lending at Shawbrook Bank, said: “Shawbrook is delighted to see the secured market growing at last and we at Shawbrook are pleased to play a leading part in that growth. As consumers gain in confidence, but find first mortgage lenders continually reluctant to consider refinances, secured loan products are becoming increasingly attractive.
“The market should increase further with the widening of loan product offerings and an increasing recognition from brokers that secured loans are a viable alternative to traditional mortgage products.”
July also saw the launch of Masthaven Secured Loans and its chief operating officer Stuart Aitken added: “The market is in growth mode making this an ideal market for funders looking to take advantage of a massively underpowered market, and an ideal time for Masthaven Secured Loans to launch.
“The lending environment is also a little more positive, with continuing low interest rates and increased employment.”