28% rise for secure lending

Homeowners are waking up to the usefulness and versatility of second charge mortgages according to new research from master broker Enterprise Finance.

Related topics:  Finance
Warren Lewis
2nd March 2015
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The Enterprise Finance Secured Loans Index, launched today, shows secured lending increased from £609m for the twelve months to January 2014 to £779m for the year to January 2015 – a rise of almost 28%.

The research also suggests that the current average secured loan size in January was £54,050, an increase of 15% from December and 12% above last January’s figure.  Home improvements are currently the major motivator for individuals taking out secured loans; accounting for 47% of all activity.

Harry Landy, Director of Enterprise Finance, said: “Home improvements are the most popular reason for taking out a second charge on one’s property, but we are also seeing people use secured loans for a variety of reasons including debt consolidation and even living expenses such as school fees.  Potential landlords are also using secured loans to purchase investment properties and with many high street banks still reluctant to lend to small businesses we are even seeing people use secured loans to help fund their own personal ventures. As the reputation of the sector continues to improve and regulation of second charge mortgages becomes increasingly stringent, then homeowners can feel increasingly comfortable about taking out the products.

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