The latest figures from the Finance & Leasing Association reveal that May witnessed an upward swing of 17% in secured loan lending over May 2011 with completed mortgages over £300m for the first time since November 2010.
This comes on the back of strong growth of 14% by value and 4% by volume in the first quarter of 2012.
Moore, director at Brightstar Financial, said the effect of so many mortgage customers being trapped with their current lenders by the withdrawal of interest-only and tougher criteria impositions with other lenders has opened up a new avenue for advisers to recommend secured loans.
He said: “The evidence is clear. The new figures underline the proof that secured loans with their transparent structure, historically low cost, improved lending criteria and no upfront charges can provide a welcome avenue for brokers looking to raise capital for clients in the face of the restrictions in the mainstream mortgage market.”
Maeve Ward, head of sales, secured lending at Shawbrook Bank, added: “Secured loans provide an alternative way for clients to release equity from their home whilst leaving their current mortgage in place and Shawbrook has certainly experienced a higher demand as both brokers and clients realise their importance as a viable alternative to remortgaging.”
