Expediential growth predicted for the secured loans market
Secured loans are fast becoming the premier tool for consumers looking to consolidate all of their outstanding credit commitments, with the intention of reducing their monthly outgoings in the process.
One of the UK’s largest independent market analysts firms has also revealed that the secured loans sector is growing at an expediential rate, predicting growth over the next five years to exceed more than a 35%, valuing the market at more than 10 billion pounds.
There are a number of factors used to explain this rising trend, however it is thought that due to a major economic reshuffle with regards to unsecured credit, vast numbers of homeowners may find that offering collateral against their loan is the only way to obtain credit. It is also believed that loan applicants with a positive history of credit acquisition are less deterred by a secured loan especially if by choosing such a route will equate to a better deal.
Experts agree that the effect of the aptly named “credit crunch” on the personal loan market is unlikely to deter credit providers in the long term, and it is believed that many are playing a game of “wait and see” before re-offering or re-packaging their products.
