Men prefer secured loans
According to a report conducted recently by a price comparison site, the secured loans market is healthy, and is driven by men.
Apparently more people are securing finance against their homes, drawn to the added benefits of being able to borrow larger amounts, over longer periods of time. The report also suggested that men are most likely to secure a loan against their property, with women forming the minority share of the market. Women also borrow considerably less than men if opting for secured loans. However, the majority of unsecured borrowers tend to be female.
The study has also discovered that the most typical loan amount among prospective borrowers is between £10-25,000, with only 20% requesting more than £25,000. The average repayment term is between 5-10 years.
Self-certifying or self-valuating property is also said to be on the increase. Almost 2 In 10 homeowners would rather self-value their home, than use a professional appraisal. Based on this trend, over 85% of the UK’s home owning population, claim their house is worth over 100k, with the average house price in Q1 2007 being over £210,000.
