Secured loan lending rose to £150 million in the first six months of 2012, according to the findings of the first Loans Warehouse Secured Loan Index.
The research from the UK master broker, taking information direct from its lenders and the Finance & Leasing Association (FLA), shows a 12% increase on the same period in 2011.
Gross lending in the second quarter advanced to £76 million, a 10% increase on the same period last year, while the average loan size in June 2012 was £19,000.
According to Loans Warehouse, FLA figures for June will show total lending totalling £24 million, a 9% fall on May’s results, highlighting the effect of the spring bank holiday.
“We wanted to produce a secured loan index which proved this sector is witnessing a significant boost,” said Matt Tristram, joint managing director of Loans Warehouse.
“Whilst we have predicted FLA figures in June will show a 9% drop on May’s figures, you have to take into account that these results don’t include all lender’s figures. New lenders have since entered the market and are not accounted for in the FLA data. The actual figure for June, taken direct from our panel of lenders, reveal that lending is actually over £2 million higher than the anticipated result, taking the total lending figure in June 2012 to £26.5 million.
“This year has seen many positive changes for the market. The loosening of lending criteria over the past 12 months is having the biggest impact, along with record low rates and redemption fees. Customers are evidently taking full advantage of this revival period and the industry is growing as a result.
“Increased availability and improved criteria was never more apparent than in June. In particular was Nemo’s announcement to open up its products by launching a One Unit Plan, a product that hasn’t been offered by them since before the credit crunch. Nemo have predicted that these changes will encourage market growth, something that will definitely become more apparent in July.”