Daily value of secured loans increases Apr 2021 | moneyfacts.co.uk

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Michelle Monck

Michelle Monck

Consumer Finance Expert
Published: 12/05/2021

Exclusive data from Loans Warehouse has revealed the daily value of secured loans completed in April 2021 has increased by just over 5% compared to the prior month. Secured lending totalled £77.6m during the month.

Matt Tristram, Managing Director, Loans Warehouse commented on the results “The number of completions dipped below last month's 2,000 headline, with 1,908 second charge loans being completed in April 2021 (but still 278% up on April 2020).

"Whilst month-on-month we saw a dip in lending from £91.4m to £77.6m, this figure doesn't give a true reflection of the growth month-on-month. March had 23 working days compared to April at just 20, working day completions were up significantly with the daily completion volume for April at £4.57m compared to £3.97m in March - an increase of 5.2% per day.”

Three out of five of those taking a secured loan in the UK in April 2021 was to consolidate debts or for home improvements and debt consolidation together. A further one in five focussed on home improvements only.

Secured lenders continue to offer fast service levels with the average completion time in April 2021 of 12.80 days, only 0.1 days slower than in March 2021.

The average term of a secured loan has increased in April 2021 to 13 years compared to 10 years last month.

Is now a good time to get a secured loan?

The figures released by Loans Warehouse today show lenders continue to grow in confidence and are agreeing new secured loan applications. Those happy to use their home as security for a loan can find competitive interest rates. Some examples include:

The best £30,000 secured loan over 10 years

Paragon Personal Finance, Prime Rate Secured Loan at 3.40%. Maximum LTV 65%. Representative APRC is 5.4% (Variable).
Paragon Personal Finance, Prime Rate Secured Loan at 3.60%. Maximum LTV 70%. Representative APRC is 5.5% (Variable).
Paragon Personal Finance, Prime Rate Secured Loan at 3.80%. Maximum LTV 75%. Representative APRC is 5.8% (Variable).

The best £10,000 secured loan over 10 years

United Trust Bank Ltd, Secured Loan at 3.85%. Maximum LTV 65%. Representative APRC is 6.0% (Fixed).
United Trust Bank, Secured Loan at 4.15%. Maximum LTV 70%. Representative APRC is 6.4%. (Variable)
Shawbrook Bank, Variable Secured Loan at 4.60%. Maximum LTV 75%. Representative APRC is 6.6%. (Variable).

The best £7,500 secured loan over 10 years

Optimum Credit, Prime Rate Secured Loan at 4.45%. Maximum LTV 50%. Representative APRC is 6.5%. (Variable).
Optimum Credit, Prime Rate Secured Loan at 5.07%. Maximum LTV 60%. Representative APRC is 7.2%. (Variable).
Optimum Credit, Prime Rate Secured Loan at 5.25%. Maximum LTV 70%. Representative APRC is 7.4%. (Variable).

Representative Example

If you borrow £35,500 over 14 years at a rate of 8.95% variable, you will pay 168 instalments of £418.88 per month and a total amount payable of £70,371.84. This includes the net loan, interest of £30,326.84, a broker fee of £3,550 and a lender fee of £995. The overall cost for comparison is 11.8% APRC variable.

Find a secured loan

Speak to our preferred secured loans broker on 01923 660 296 or arrange a call back.

Borrowers should remember that secured loans often come with additional fees compared to an unsecured loan and their property is at risk if they cannot keep up their repayments.

The above rates are all mostly available to those with a good credit rating. It is free to check your credit score with firms such as TotallyMoney.

Borrowers can also compare credit check options on our guide. Borrowers with a poor credit score should consider speaking to those lenders specialising this bad credit secured loans.

Compare more secured loan rates.

 

THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR OTHER LOAN SECURED ON IT. Loans are subject to status and valuation, secured on residential property and not available to those under 18. The APRC quoted will be offered to a majority of applicants. You may be offered a higher rate depending on your personal circumstances. All rates and terms may change without notice so please check with Loans Warehouse before undertaking any borrowing.

Disclaimer

Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time. Links to third parties on this page are paid for by the third party. You can find out more about the individual products by visiting their site. Moneyfacts.co.uk will receive a small payment if you use their services after you click through to their site. All information is subject to change without notice. Please check all terms before making any decisions. This information is intended solely to provide guidance and is not financial advice. Moneyfacts will not be liable for any loss arising from your use or reliance on this information. If you are in any doubt, Moneyfacts recommends you obtain independent financial advice.

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