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Secured loans falling, figures indicate

Secured loans falling, figures indicate

Category: Loans

Updated: 27/08/2010
First Published: 27/03/2009

MONEYFACTS ARCHIVE
This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

The value of secured loans granted in the UK is dropping, it has been revealed.

Figures from the Finance and leasing Association (FLA) showed that new business fell 84 per cent in January, compared to the level of 2008.

The organisation noted that secured loans, or second charge mortgages, are often used for debt consolidation efforts or for improving property when a homeowner opts not to move.

And Fiona Hoyle, head of consumer finance at the FLA, explained that the decline in availability has come "as a result of the difficulties facing companies trying to secure funding in the commercial markets".

Unsecured loans were also found to have experienced a marked decline, down 35 per cent compared to figures from January, while credit card lending dipped 12 per cent.

Recent figures from Unbiased.co.uk indicated that it takes Britons 83 days to pay off the interest accumulated on debts such as secured and unsecured loans.

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