Secured lending market buoyed by climbing consumer confidence
Secured lending grew by 13.7% in March according to the latest Enterprise Finance Secured Loan Index.
This means that £75.5m of second charge mortgages were taken out by homeowners in the third month of 2015, a significant uptick from the £66.4m transacted in February and a five-year high for the sector. The total amount lent on an annual basis now stands at £799m, a 19% improvement from the previous 12-month period.
Harry Landy, Director of Enterprise Finance, said: “March’s secured lending activity represents the market shifting up a gear after a solid start to 2015 and shows that demand for consumer credit remains keen. Monthly and annual improvements of almost 14% is further evidence that public attitudes to borrowing continue to improve as the economy recuperates to something resembling a clean bill of health.
“Annual lending of £799m represents a significant increase from the £672m seen in the twelve months to March 2014 and if the secured loan market continues to grow at this rate, then this time next year we won’t be far off talking about a billion-pound industry. How smoothly the secured loan sector reacts to being regulated in the same manner as mainstream mortgages when the switch occurs next March will obviously be a determining factor in when that particular landmark is reached, but it shouldn’t represent a significant challenge to further growth.”