Secured lending volumes were once again up during the month of April, with total activity having increased by around 5% compared to March. The latest figures revealed by Loans Warehouse suggest total secured lending activity of £77.6 million during April, fuelled by growing demand for affordable loans for home improvements and debt consolidation.
Speaking on behalf of Loans Warehouse, managing director Matt Tristram commented on the sector’s reassuring return to strength in the wake of over a year spent in lockdown.
“The number of completions dipped below last month's 2,000 headline, with 1,908 second charge loans being completed in April 2021 (but still 278% up on April 2020),” he said.
"Whilst month-on-month we saw a dip in lending from £91.4m to £77.6m, this figure doesn't give a true reflection of the growth month-on-month. March had 23 working days compared to April at just 20, working day completions were up significantly with the daily completion volume for April at £4.57m compared to £3.97m in March - an increase of 5.2% per day.”
Popular Uses for Secured Loans
The figures from Loans Warehouse highlighted several important trends in the way secured loans are being used by the UK public. During April, three in every five issued were used either as secured business loans or a combination of debt consolidation and home improvements.
Meanwhile, around one in five were issued solely for the purpose of home improvements or renovations.
Completion times were also found to be consistently fast throughout the month, with the average secured loan taking just 12.8 days to complete in April. This represents a fractional increase of 0.1 days compared to March, but is nonetheless better than the usual industry norms.
Loans Warehouse also revealed that average secured loan terms in April increased significantly to 13 years, up from the average of 10 years recorded in March.
Competitive Interest Rates Continue
Rock-bottom interest rates are fuelling the secured lending sector’s strong performance, with competitive bad credit secured loans available from a wide variety of High Street banks and even more so via specialist lenders.
Some of the most competitive deals currently available as highlighted in the Loans Warehouse report include the following:
£30,000 secured loan over 10 years
Paragon Personal Finance, Prime Rate Secured Loan at 3.40%. Maximum LTV 65%. Representative APRC is 5.4% (Variable).
£10,000 secured loan over 10 years
United Trust Bank Ltd, Secured Loan at 3.85%. Maximum LTV 65%. Representative APRC is 6.0% (Fixed).
£7,500 secured loan over 10 years
Optimum Credit, Prime Rate Secured Loan at 4.45%. Maximum LTV 50%. Representative APRC is 6.5%. (Variable).
Source: Loans Warehouse
Independent Broker Support
If you are considering taking out a secured loan for any purpose, independent broker support can help ensure you get the best possible deal. At UK Property Finance, we conduct extensive market comparisons on behalf of our customers, comparing deals from major banks and specialist lenders from across the UK.
For more information or to discuss secured loan applications in more detail, contact a member of the team at UK Property Finance today.
Author: Craig Upton
