Loans Warehouse, which produces the Secured Loan Index, said the figures represented an increase of 14.1% on December 2014 and marked the 39th consecutive monthly year-on-year increase.
Last month saw the Finance & Leasing Association (FLA) report that the number of secured loan repossessions was at its lowest level for at least six years in 2014 with a total of 414. The 79 repossessions reported in the last quarter of 2014 was down 35.8% compared with the last quarter of 2013.
Matt Tristram, co-founder and director of Loans Warehouse, said: “It’s fair to say that the secured loan industry has picked up where it left off at the end of 2014, with continued monthly growth reconfirming that as an industry we continue on the right path.
“Lenders’ appetite to lend continues and the competition for rates has seen further enhancements to criteria.
“Masthaven Secured Loans, Blemain Finance and Central Trust have all reduced rates again, with headline rates now 7.60%, 7.63% and 9.10% respectively.
“The latest new entrant to the market, Paragon Personal Finance, has reduced its lending rates announced in October 2014 and introduced fixed rate products.”
Loans Warehouse predicted that competition for secured loans against buy-to-let properties is about to increase. For example, Shawbrook Bank has reduced rates on its buy-to-let range whilst increasing the availability of the ‘valuation bypass’ option to further reduce costs and processing times. Meanwhile Evolution Money has released its first buy-to-let range with rates from 12.7% at 90% LTV.
Figures released by the Finance and Leasing Association (FLA) last week, reflected a positive picture for the seconds market with £51m of lending in the month of January, a 13% year-on-year rise.
