Recent trends in the lending market show a decline in secured loan approvals from traditional banks, leading more people to turn to independent lenders for their financial needs. The Bank of England recently noted a drop in secured loan approvals from June to September 2014. Predictions suggest that these approvals have hit their lowest point in two years, paving the way for independent lenders like Loan.co.uk, who offer more flexible borrowing terms and more affordable options for borrowers.
Current Housing Market Situation
The pace of Britain’s housing market has slowed down significantly, as noted by the Bank of England. There is an ongoing concern about a possible housing bubble, which has led to new laws aimed at restricting risky lending practices. Interest rates fell to 3.18 percent by October, a slight decline from September, while mortgage approvals hit a 16-month low. According to Halifax, housing prices have dropped substantially over the past two years, showing the weakest price growth in this period.
Shift in Bank Policies and Rise of Independents
The gloomy statistics in the housing market, combined with new regulations to curb risky lending, have made banks more cautious. Some believe this caution is too extreme. However, the job market is improving, with rising average salaries increasing disposable income, thus making it easier for people to handle loans secured against properties. Banks have become stricter about loans that could extend into retirement, leading to a decline in such loans in recent years.
Final Thoughts
Some independent observers believe that banks’ new conservative approach is too restrictive, opening up opportunities for independent secured loan lenders to offer an alternative. It’s important to choose a reliable lender and gather all necessary information before making any decisions. With careful consideration, you can secure a loan with a favorable interest rate.