February 12, 2016
February 12, 2016
Harry Landy, Sales Director of Enterprise Finance, said: “If household debt does grow at the rate forecast by the Arrow Global report, we could see a surge in secured lending over the next five years.
Consumers may turn to secured lending for support, as they seek to consolidate their various sources of personal debt. By obtaining a second-charge loan against assets like property, lenders will be able to offer lower interest rates compared to other forms of borrowing. This will make their monthly repayments much more affordable. The latest Enterprise Finance Secured Loan Index shows that debt consolidation is already one the most popular reasons to take out a second-charge loan and we would expect this to increase in future.
“The introduction of the EU’s Mortgage Credit Directive next month will ensure that secured lending remains responsible and borrowers are properly protected. This regulation will increase consumer confidence, as they will feel more confident turning to secured finance as a viable alternative to remortgaging. By providing help to those in need, the secured loan industry can help limit the future growth in home possessions.”
This comment first appeared in Loan Talk.
This information is intended for professional intermediary use only and must not be distributed to potential customers.
Enterprise Finance Ltd is authorised and regulated by the Financial Conduct Authority. Firm Reference Number: 302964. Certain types of loans are not regulated, for example loans for business purposes or certain buy-to-lets. Enterprise Finance Ltd is registered with the Information Commissioners Office.
Registration Number: Z6765361 Enterprise Finance Ltd is registered in England and Wales. Company Number: 04440152. Registered Office Address: 3rd Floor, Premiere House, Elstree Way, Borehamwood, Hertfordshire. WD6 1JH.
This information is intended for professional intermediary use only and must not be distributed to potential customers