Lending in December was 13% lower than in November at £40.9m but 66% higher than December 2012.
Matt Tristram, co-founder and director of Loans Warehouse, said: “Lending figures have increased every single month in 2013 compared to the previous year.
“At the start of the year, there were certain months I personally thought would be hard to beat. However every single month we have reported increased lending figures on the previous year.”
New entrants to the market are expected to drive up competition and demand for secured loans further in 2014.
In 2013 five new lenders entered the market; Clearly Loans, TFS, Firmus Secured Loans, FinSec and Precise while Spring Finance rebranded as Watchtower.
This increased competition served to ignite a rate war pushing the lowest rate down to 5.4% and the maximum loan size up to £2.5m, offered by Prestige.
The trend of new lenders looking at the secured loan market is set to continue as United Trust Bank, Paragon and Aldermore are rumored to be looking to release a secured loan range this year.
Michael Coogan, strategic advisor at Loans Warehouse, said: “2014 is a momentous year for the lending industry in the UK.
“Within the secured loans sector demand will ensure market growth continues and loans will be at historically attractive interest rates.”
