April saw a month-on-month fall in secured lending, but it was still up by more than 18% on the amount lent in April 2013, according to Loans Warehouse’s Secured Loan Index.
With gross lending in April 2014 totalling £49,531,281, industry lending figures are to date 40% up on 2013.
For the 29th month in a row, Loans Warehouse has reported year-on-year growth in secured lending.
Matt Tristram, co-founder and director of Loans Warehouse & Clearly Loans, said: “Many industry experts have told me, when a new regulator is introduced there may be an initial ripple. That is exactly what I would put April’s drop in lending down to and fully expect May to be breaking new ground.
“I know from our own experience that whilst we felt well prepared, we found ourselves asking questions we’ve not asked before; not a bad thing but it was a distraction from the usual business flow whilst you learn and adapt to a new regulator.
“The change of regulator means that there are going to be challenges ahead, but as an industry we are in a fantastic position to embrace this and put secured loans back on the financial map and there’s reason for confidence with details announced last week showing annual prices 8.5% higher in the three months to April than in the same three months last year, whilst at the same time the Finance & Leasing Association (FLA) reported a 43.4% fall in second-charge mortgage repossessions in Q1 2014, compared with the same period last year.”