Thistle’s claim came in the wake of the latest Credit Conditions survey from the Bank of England, which showed the availability of unsecured loans dropped by 13% in the third quarter of 2017 and is estimated to fall by nearly 30% in the final quarter — the biggest quarterly contraction since 2008.
In the low interest rate environment of recent years, households have taken on a huge amount of unsecured debt, in part encouraged by the low loan rates offered on the high street.
But in recent months the banks have become a lot more cautious as a result of 3% inflation and stagnating wage growth. Meanwhile, the first interest rate rise in a decade could come as early as November.
Second charge opportunity
Mark Dyason, managing director of Thistle Finance said: “There has been a lot of talk in the broker community over the past year about the opportunity surrounding the seconds market and the latest Credit Conditions survey from Threadneedle Street suggests it is not misplaced.
“With rates much lower than they were pre-crisis and far more more transparency among providers, next year could see the number of secured loans double compared to 2017, and brokers will play a key role in ensuring their clients go to the right lender and get the right advice.
“Crucially, as well as offering much lower rates, many secured loans today have no early repayment charges, making them a genuine alternative for people looking to take control of their finances,” he added.