Three in five (61%) secured loan are being used for debt consolidation based on Clever Lending’s own cases in 2015.

The master broker said clients are commonly reorganising their finances from more expensive forms of borrowing onto a secured loan.

Other less popular uses for secured loans include home improvements.

Sonny Gosai, sales & operations manager at Clever Lending said: “The amount of secured loans we arrange for brokers and their clients is being reflected in the number of products available. Lenders have shown real confidence in this sector and are providing products to meet almost every situation. There really is a loan out there for everyone who needs to refinance their existing debt.

“Brokers too are responding well and we work hard to educate and communicate the benefits of secured loans for a wide variety of customer types.

“For many people it’s a clever solution for the longer term rather than recycling debt to other high interest cards or loans. Even if there’s a low APR credit card offer to transfer to, this may only be a short-term fix and not suitable to restore a client’s credit profile over the longer term. For these reasons secured loans can be the better option to help repair a customer’s credit file and get the client back on their financial feet.”