The Secured Loan Index has revealed there was a surge in secured lending in February with monthly lending 10.5% up in comparison with January 2015.
This marks the 40th consecutive monthly year-on-year increase seen by the Index and shows how quickly the secured loan industry is growing.
After just two months of 2015 the total amount lent in the first quarter of 2013 has been surpassed and, in fact, the gross lending figures for January and February 2015 are 18% higher than Q1 of 2013.
Matt Tristram, co-founder of the Secured Loan Index and director of Loans Warehouse, said: “It’s all about the fixed rates.
“Whilst a fixed rate period of lending has been common place in the mortgage market for many years, it’s been surprisingly rare in the second charge industry.
“However, in the last 12 months many lenders have made steps to change that. Last month Prestige Personal Finance, Optimum Credit and Nemo Personal Finance announced fixed-rate options were being added to their secured lending ranges, joining Paragon Personal Finance, Shawbrook Bank, Precise Mortgages Secured Loans, Central Trust, Blemain Finance and Clearly Loans who all have offered fixed rate options for some time.
“With the Financial Conduct Authority taking over regulation of the second charge industry, it is noticeable that the changes lenders are making are drawing us more in line with first charge products.
“It’s not all about that though. Lenders making changes to their product offerings, such as the introduction of new fixed rates and Buy-to-let options, is a demonstration that they are listening to what consumers want and where they see future areas of growth.”