According to official figures, secured loan lending in February reached £65.5m, which marks a 30 percent year on year increase. Lending by the second charge sector had a 12 increase in January 2020. This brings the year to date lending to £533.3m, which is higher than the 2019 total lending.
Secured Loan experts UK Property Finance speculated that the lending industry is continuing to move in the right direction. There has been a lot of competition between lenders, and this has led to reduced interest rates. There have also been new products introduced to the market. This benefits both the borrowers and lenders.
Lenders have been loosening the criteria that needed to be met before applying for a loan. They have also dropped their interest rates in order to increase their volume. Shawbrook, which is a prominent lender in the UK, has set its base rate at 4.29 percent.
Attractive interest rates are one of the reasons more people are choosing to apply for a secured loan. In the past, people were reluctant to take out a secured loan because of the high-interest rates. Additionally, because lenders are loosening the requirements needed to apply for a loan, more people are able to get approved. People are realizing they have more lending options available.
The industry is benefiting from the competition between lenders, the industry was barely surviving during the past few years, and it has finally made a turn for the better. Every month, the industry continues to move in in the right direction. That is why many people who work in the industry are positive about its future.