Debt consolidation is still the number one reason to take out a loan secured against property, but borrowers are increasingly using them for other lifestyle-related reasons, said a loan packager.
Home improvements and special life events like weddings and once in a lifetime holidays are appearing more frequently as reasons to borrow, reported V Loans, signalling greater consumer confidence.
Marie Grundy, operations director at V Loans, said: “There is a long way to go before the economy is off the danger list but the evidence we are seeing points to an increasing level of confidence among the public. Also more intermediaries are getting comfortable with recommending a secured loan because they are so simple, transparent and cost effective and provide borrowers with tailor made financing which does not interfere with their mortgage arrangements.”
