Mortgage News
Secured lending falls 21%
The level of secured lending fell 21% to £277m in 2010 compared to the previous year, according to Finance & Leasing Association (FLA).
Its research showed that its members made secured loans of just £16m in December 2010, down 47% on the same period of 2009.
Second charge lending by FLA members in quarter four did not fare much better, falling 33% to £62m.
The FLA revealed that consumer credit lending as a whole dropped 6% in 2010 to £50.2bn. However, this was buoyed by the consumer car market and, without it, the consumer credit market would have fallen 10% over the year.
Fiona Hoyle, head of consumer finance at the FLA, said: “These figures confirm that there is no such thing as ‘easy credit’. Stricter lending requirements under the new EU Consumer Credit Directive mean that some consumers are finding it harder to access credit. Low consumer confidence is also a major factor in this fall in lending.
“Against this background of reduced lending and declining consumer confidence, the government needs to be careful not to regulate some kinds of credit out of the market.”
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