The momentum of the secured loan market has continued to outpace 2012 despite a 13% drop in lending volumes in August marking the most significant drop in month-on-month lending this year.
Matt Tristram, director and co-founder of master broker Loans Warehouse and lender Clearly Loans, said: “The secured loans market is on the up and up.
“With rates starting below 6% 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.”
Last month the secured loan industry welcomed the addition of Michael Coogan, former director of the Council of Mortgage Lenders as the new strategic advisor at Loans Warehouse.
And this month Norton Finance will celebrate their fortieth year in the industry.
Paul Stringer, loans and mortgage director and son of the founder of Norton Finance, said: “”The growth seen in the secured loan sector this year in my view is the tip of the iceberg in relation to its future potential.
“This year will be our 40th year in the business and we plan to end the year by bringing some improved plans and products to the market.
“There has never been a better time to lend and with the increased demand as customers and brokers alike realising the benefits of a secured loan then now is the time to capitalise on this.
“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 mortgage advisers and second charge brokers to work in tandem for their clients’ benefit.”
Shawbrook Bank has also exceeded £1bn in lending to SME and personal customers in the UK – the latest landmark for the bank which launched less than three years ago and broke even after just 16 months.
Whilst this figure reflects the lending of the bank as a whole Shawbrook’s secured lending team has also grown to be a huge success in the second charge market achieving the largest market share months after launch.
Philip George, managing director of Shawbrook Bank, said: “The success of the team reflects the recent resurgence of secured loans and their increasing popularity in the market as more and more intermediaries realise the potential of a secured loan as a real alternative to a remortgage for raising capital.
“Shawbrook’s network of brokers has played a pivotal role in our success. From introducing clients to feeding back on products and processes helping us to ensure that Shawbrook always offers the best possible service and products with a competitive edge.”
Referring to the forthcoming Financial Services Expo 2013 which will be held at Old Billingsgate on 1 and 2 October Tristram said: “What I find most pleasing is the presence of so many secured loan lenders. This will be the largest showing of secured lending at an event of this type since the credit crunch with lenders like Prestige Finance, Shawbrook Bank and Masthaven just a few of the names that have signed up – we look forward to seeing you all there.”