Lending by the second charge sector was 12% higher than in September and for the year to date lending has reached £533.3m which is more than total lending for 2013.
Sam Busfield, co-founder and director of Loans Warehouse, said: “There is no doubt that the industry has continued moving in the right direction. The ceaseless increased competition between lenders has led to interest rates once again reducing and additional products being brought to market – good news for all concerned.”
Secured loan sourcing system provider The Lending Wizard predicted that the sector would break through the £1bn annual lending barrier in the next three years.
It said that an improved awareness in the consumer credit industry and the forthcoming European Mortgage Credit Directive will drive this growth.
Lenders have been dropping rates and loosening criteria since the summer in a bid to drive up lending volumes.
Prestige Finance reduced its headline rate to 5.29% in its middle tier while Shawbrook introduced a base rate tracker at 4.99%.
“The competition between lenders is undoubtedly a significant benefit to our industry,” said Busfield.
“Having spent a few years just about surviving we have now turned a corner. Month after month we are seeing the curve move in the right direction, leading to a positive feeling throughout the industry.”
