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Follow on Google News | UK Secured Loans market sees introduction of plans for 90 and 95 percent loan to valueThe UK secured loans market received a huge shot in the arm recently when two of the markets’ leading lenders introduced new products which allow borrowers to lend up to 90% and 95% of the value of their property respectively.
By: Caboodle Finance As such, secured loans have become an integral part of the product offerings considered by many advisers looking to raise additional funds for their clients. The UK secured loans market improved month-on-month during 2012 and it appears this trend will only continue throughout 2013 as product enhancements, improved criteria and lower rates continue to attract attention. These factors coupled with increased funding availability are leading to many industry commentators predicting big things for the UK secured loans market. The introduction of the 90% and 95% products by Nemo Personal Finance and Shawbrook Bank respectively have taken the secured loan market to place it has not been for a number of years following the withdrawal of a number of lenders during the last 4-5 years. Previously it was not uncommon for lenders to lend up to 100% of the value of the property, and in some instances above the value of the property. The credit crunch which started in 2007-2008 put a temporary end to high loan to value lending which has only started to return as the UK financial climate has shown signs of improvement. Shawbrook Bank head of sales for secured loan lending says: “We are very proud of the impact we made in the secured lending market last year and are delighted to introduce a new product which we know from the broker feedback we receive on a regular basis the sector was crying out for. We were aware that some homeowners were being hindered by a lack of higher LTV lending options, but this product will really open up the market to them.” She also went on to say: “Our aim is always to be one step ahead of the curve and this product is a first for the secured loan market. We value the relationships we share with our broker partners and we will continue to work closely with them this year to enhance our product range even further where possible, making sure that our offering and services suit the needs of the market and offer real value to customers.” These product improvements and the promise of more to come are a positive sign that lending in certain sectors of the UK market are improving slowly and that with the correct modelling, pricing, risk appetite and approach they can continue to grow and be successful. The challenge facing many lenders though is that the combination of these factors is a difficult gap to bridge at the current moment despite assistance and encouragement from a number of arrears, including government backing. Visit http://www.caboodlefinance.co.uk for more details on how UK secured loans work. For more information on how a UK secured loan could benefit you visit http://www.caboodlefinance.co.uk/ End
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