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Secured lending reaches new highs

Secured lending reaches new highs

Category: Loans

Updated: 25/11/2013
First Published: 25/11/2013

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 It is now over 6 months old so the content may be out of date.

Second charge mortgage lending continued to go from strength to strength in October, with the latest figures from Loans Warehouse revealing a 22% increase when compared to September.

An impressive month within the industry saw total lending rising to £50.37 million for the first time since 2009.

Meanwhile, over 2013 as a whole secured lending is already 18% higher than 2012's total.

At the same time that secured lending has been increasing, the number of second charge mortgage repossessions has been falling.

In fact, the latest figures from the Finance & Leasing Association (FLA), which is the body that oversees consumer credit lending, show that repossessions in the third quarter of this year were down 11.7% when compared to the same quarter in 2012.

Commenting on the latest figures, Loans Warehouse's co-founder and director Matt Tristram said: "The last few weeks have seen some encouraging headlines; the drop in the rate of headline inflation to 2.2%; the Land Registry announced annual house price growth of 3.4%; and mortgage approvals are at their highest levels since February 2008.

"But, for me, the most telling figure is that second charge mortgage possessions fell 11.7% against the same quarter in 2012…

"The latest figures from the FLA demonstrate that, in the past, the secured loan industry made responsible lending decisions to borrowers who can afford their loans, and we expect that positive picture to be reinforced by a new regulatory structure."

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