UK Secured loan market continues to grow

According to statistics released today The amount of secured loans arranged between January and October of this year has already surpassed the entire number for last year by £6.8M. This is because the second-charge loans sector is continuously expanding in order to fill in the gap caused by the reluctance of first-charge lenders to lend.   Mainstream lenders unwilling to lend At present, mainstream lenders impose strict criteria and unreasonably high rates. In addition, they only offer unsecured loans with a maximum loanable amount of £25,000. Most consumers want more than this and they are starting to realize that they are other practical finance solutions available. This could be another reason for the strengthening of the secured loans sector. Secured loans sector receives gets full support The support that the secured loans industry has received from its lenders is crucial to its fast growth. Just last September, Central Trust Limited (CTL), announced several major improvements to its product plans. In order to establish its commitment to aid in the development of the secured loans market and enhance its image as a feasible alternative to other financing options like re-mortgaging, it simplified the loan application requirements and sped up the entire process. These improvements implemented by Central Trust will definitely present huge benefits to borrowers and brokers and prove as a very enticing selling point. The secured loan lender's move is proof that the sector is currently in an upward growth cycle. Secured loans now an attractive option In addition, secured loans are an attractive option to borrowers who would rather not enter into re-mortgaging to protect their interest-only mortgage. They are most probably on really competitive fixed rates that they don't wish to disturb and lose. Hence, if they can find a cost-effective financing option that would be able to offer them capital without disturbing their existing mortgage, then they would definitely go for that. It is also worth mentioning that Nationwide, UK's largest building society, abolished last month the cheapest type of mortgage – interest-only mortgage – that has previously helped millions of people purchase their first home. And other banks are seen to follow suit.   Another reason that makes secured loans very enticing is that borrowers with a bad credit history can still be approved for a loan as long as they have equity  in their assets and properties. By taking out a secured loan, they can not only finance their needs but also be given an opportunity to restore their bad credit rating.   Getting Advice on secured loans There are almost 20 different lenders in the market, each with a wide range of optiosn so it can be a bit confusing. At Choice Loans we will take time to get to know your situation and will advise you on your options. And of course it's all without upfront costs so you have nothing to lose. To enquiry either complete our Secured Loan enquiry form here or call us on 0845 1260350.