The packager said the secured loan market was experiencing growth as more intermediaries turned to the sector because of a lack of appetite for capital raising remortgages in the first charge market.
Dave Pinnington, business development director at V Loans, said: “Brokers are coming to us with enquiries for business purposes, investment property purchases, debt consolidation and home improvements.
“As the first charge market has retreated from lending so secured loan lenders have stepped up to fill the gap.”
Pinnington attributed the trend to lenders such as Shawbrook, Blemain, Masthaven and Nemo all increasing offering larger loans.
He explained that this activity was feeding through to intermediaries who, faced with not being able to use remortgaging as freely as in the past, were using secured loans to maintain existing borrowing at preferential terms and provide a way for clients to borrow the extra funds they required.
Maeve Ward, head of sales at Shawbrook Bank, said: “Shawbrook’s increased loan size is a breath of fresh air for the market. There are many high net worth clients that are looking to release equity from their property whilst leaving their preferential mortgage rate in place.”
