Secured Loans Slowdown Predicted
Market analysts predict a slowdown in secured loans lending
16th September 2005
A new report from market analysts Datamonitor has predicted that secured loans will decline in popularity over the next 5 years, mirroring a slowdown in property price growth.
Secured lending has boomed in the last 5 years, as homeowners have found rocketing house prices have provided them with large amounts of equity that they can use to secure a loan against.
The report says that while the last 5 years have seen an average annual growth in lending of 50%, the rate will plummet to just over 5% over the next five.
Datamonitor say that growth could be boosted if the industry's image could be moved away from only catering to borrowers who have bad credit ratings, and attract more mainstream customers.
A 're-branding' of this kind could even see high street banks playing a bigger role, widening their secured lending activites alongside the more usual unsecured loans offered today.
Read More: Money Guardian: Slowdown in secured loans looms
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