More borrowers accepted for secured loans in the UK in March 2021

The Secured Loans Index has revealed a 31% increase in secured lending in March 2021 compared to the previous month. There were more than 2000 secured loans completed, at a total of £91.4 million during March 2021. That increased figure is now only 1.72% behind levels achieved in March 2019, a signal that the market is recovering from the effects of the Coronavirus pandemic.
There was a decrease in the number of borrowers taking loans over 85% - a reduction of 4.18% compared to last month.

Secured lending has increased by more than £20m during March 2021 compared to February, but this additional volume has not resulted in delaying completions time. Average completions have only increased from 12 to 13 days from February to March 2021. Compared to a mortgage where times to complete and access funds can be many months as lenders continue to grapple with backlogs for valuations.

Matt Tristram, Managing Director at our preferred secured loans broker Loans Warehouse said “Borrowers can now be more confident in finding the right secured loan for them as the number of loans and lenders increases without compromising service levels. This is especially important for those needing to move quickly, for example to secure an auction purchase while the stamp duty holiday is in force. Those borrowers wanting to consolidate debt or make home improvements will find an excellent choice of products and competitive rates available. “

During March 2021 nearly half of borrowers used a secured loan solely for debt consolidation, while 22% combined consolidation and home improvements, with a further 19% focussing only on home improvements.

Borrowers should remember that their property is used as security for a secured loan and failure to repay the debt could result in the loss of their home.

Optimum Credit has launched a set of new secured loan products called Optimum Plus. These are designed to meet the needs of borrowers that are self-employed, older borrowers or have variable sources and variable income.

Borrowers over the age of 55 could also release cash from their home with a lifetime mortgage. Use our equity release calculator to see what you could release from your home.
Those looking to make home improvements, such as an extension or an addition of a home office can find different finance options in our story about how to get a home improvement loan.