Secured Loan Index ured Loan
The secured loan industry has witnessed a steady pace of growth over the last two years, recently boosted by an increase in market awareness. Overall secured loan lending in 2012
currently stands at £327.1m - this is the highest level since 2009, where overall it stood at £566m.
Second charge lending advanced to £34.3m during November. This was a 7.5% increase on the £31.9m lent in October and a 22.5% increase from £28m in November 2011. November saw the fifth consecutive month where lending has been over the £30m mark, evidence of how the secured loan industry has stablised since the credit crisis. Shawbrook announcing its new strategy to attract more sophisticated individuals to the market unsurprisingly had an impact on November’s figures. Enquiries from high net worth
nding (£m)
277m 2010
borrowers are increasing across the board – evidence enough that the secured loan sector is definitely maturing.
011; SLI figures, 2012
Not only that but the lending levels the index has highlighted so far clearly demonstrates how much the second charge market has stablised. We have had uninterrupted levels of over £30m for five straight months now and demand for secured loans has remained relatively consistent. The key to recovery is a stable market and compared to the irregular 2011, I think it’s reasonable to say that the market is in excellent health.
286m 2011
327.1m 2012
Over these last few months,
Secured loan industry cele Matt Tristram looks back over the last 12 months in secured loans
awareness of secured loans has increased substantially - especially among brokers and it’s encouraging that more mortgage networks are ensuring they’ve a secured loan offering through a master broker. Secured loan awareness has certainly
grown but it is clear that there is still a lot more to do. Raising general awareness among brokers is all well and good but brokers need to fully understand the benefits of secured loans first so that they can deliver well-informed advice to their clients.
All in all 2012 was a great year for the secured loan industry but I believe 2013
will be the year. Improved confidence in alternative lending and continued innovation from the lenders should be a huge impetus on the market in the coming months and drive the second charge lending market further forward in 2013. Matt Tristram is joint MD of Loans Warehouse
“Secured loan awareness has certainly grown but it is clear that there is still a lot more to do”
Graph 1: Monthly Lending Figures 2011-2012 (£m)
15 20 25 30 35
2011 2012
Sources: FLA figures, 2011; SLI figures, 2012 SECURED LOANS 2012 TIMELINE
January 2012 Lending at £24.9m 18.6% on 2011
February 2012 Lending at £26m
36.8% on 2011 38 MORTGAGE INTRODUCER JANUARY 2013
March 2012 Lending at £29.2m 16.8% on 2011
April 2012 Lending at £26m 36.8% on 2011
May 2012
Lending at £30.3m 26.3% on 2011
June 2012 Lending at £26.5m 1.9% on 2011
£(M)
Jan Feb Mar Apr May Jun July Aug Sep Oct Nov
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