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Secured loans hits £227m in 2013
Second charge lending has completed £227 million of loans this year and has recorded its best quarterly figures since 2009, the latest Secured Loan Index has revealed.
According to data from the latest Loans Warehouse Index, the amount lent between April and June 2013 stands at £127,281,169.50, which is the best three-month lending period since July to September 2009. In fact you have to go back to 2008 to the second quarter to find a three-month period that surpasses the latest quarter.
June see’s the third month running that second charge lending has surpassed £40 million and cements a shift in lending levels as the industry is looking to hit the £50 million benchmark
Secured loan lending in June stood at £41.9 million, a small drop of £1.79 million (4.66 per cent) on May’s figure. Lending in the quarter went up 26.4 per cent.
The annual increase in second charge lending was 49.3 per cent higher than in the same period last year and an incredible 20th consecutive month of year on year monthly growth.
David Johnson
Matt Tristram, Director of Loans Warehouse & Co-Founder of Clearly Loans, comments: “I would like to start by paying my respects and acknowledging an outstanding contribution to specialist lending, to David Johnson, who sadly passed away last week.
“Whilst I don’t confess to be as close to David as many in our industry, I know I wouldn’t be sitting at my computer talking about second charge lending if it wasn’t for his influence.
“I’ve always appreciated the kindness and generosity of his time David showed to Sam and I during our time at Loans Warehouse. Our thoughts go to David’s family and closest friends at this time.
“David’s family have asked that rather than floral tributes, there is a website in his memory where donations to Cancer research can be made www.Justgiving.com/davidjohnsonDJ.”
New entrants bring a double boost to industry
As predicted with the interest in the secured loan sector new lenders would launch and one of the first to launch is TFS Loans Processing.
Ray Bohringer, Sales Director at TFS Loans Processing explained what they bring to the market: “Whilst we have many USP’s I would say the most attractive to the broker community are no restrictions on first Lender, minimum property valuation £70,000, acceptance of an equitable charge and of course the fact that we ignore historical adverse. Our range is geared to offer new innovation that will impact a Brokers bottom line not just to offer an alternative.”
The second new entrant this month arrived with a bang on 3rd July, Clearly Loans, which has been set up by former investment banker Garry Monaghan and Loans Warehouse duo Sam Busfield & Matt Tristram.
Garry explained what first attracted him to the secured loan market: “We set up Clearly Loans to address the lack of supply in some area’s in a growing Secured Loans market. We hope that our range of products will fill some of the gaps, we will be offering loans on LTVs up to 85 per cent, higher equity on ex-council flats and making the process for self-employed applicants easier.
"For a lender, the secured loans market offers attractive returns at acceptable levels of risk. We believe that a lot of investors will be interested in the yields offered by secured loans, in these low interest rate times. Finally, the reputation of the market is clean, a very important consideration in the current regulatory environment.”
Housing market recovery
The latest housing market report from National Association of Estate Agents has reported monthly house sales increase to levels not seen since 2009. This optimism is shared with one in four people expecting house prices to increase by at least 5 per cent in the next 12 months, according to the latest quarterly Halifax Housing Market Confidence tracker.
It’s not just expectations following seven consecutive monthly house price rises and two record back to back months, reported by Rightmove’s House Price Index.
Matt concluded: “Over the past few months it’s been well documented that many of the biggest networks in the UK have been reviewing their specialist lending options. As the awareness of the value of secured loans continues to rise, the latest network to do exactly this is Intrinsic who have become the first mortgage network to gain access to Clearly Loans.”
The industry is currently buoyant with the arrival of two new lenders, and with even more lenders set to enter the market, the secured loans industry is most definitely looking up.
Jason McGee-Abe
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