Secured loans market rocketing
November 28, 2007 by admin
Filed under News, News-Loans
The personal secured loan market in the UK is predicted to grow to in excess of £10 billion by 2011, it has emerged.
Information collected by Datamonitor revealed that the growth in this type of loan from £7.5 billion in 2006 is prompted largely by increased demand to consolidate debt.
This growth is remarkable particularly because some lenders have pulled out of the market following the sub-prime crisis that hit the US this year, making lending increasingly tight.
Maya Imberg, analyst with Datamonitor’s Financial Services practice, commented: “The US sub-prime mortgage crisis and global credit crunch will affect the market in the short term.
“However the UK secured personal loans market continues to portray an encouraging future in the long term.”
Among providers pulling out of the secured loan market are Kensington Personal Loans, the London Mortgage Company, Southern Pacific Personal and GMAC-RFC.
Meanwhile, those looking to take out a secured loan will find prices going up with tighter borrowing criteria, making it increasingly difficult to do so.
Credit crunch will hit ‘less well off’ worst
October 19, 2007 by admin
Filed under News, News-Mortgages
Mortgage-seekers who are less well off will be hardest hit by the implications of global credit squeeze.
According to a representative for money education charity Credit Action, the sub-prime mortgage crisis that hit the US with its repercussions reaching UK financial markets, has meant that those with the least will now find it hardest to be successful in mortgage applications.
The mortgage market has seen a widespread tightening up of specifications for people wishing to take out a mortgage after the problems that famously hit lender Northern Rock.
However, she said: “The companies that traditionally provide for the less well off, such as the door step lenders, won’t be affected because their system is so different.
“They rely on the agent network and I don’t think that is likely to be affected at all.”
She added that the sub-prime market makes up around “ten per cent” of the UK mortgage industry and it is clear this has been impacted by problems in the US.
