The secured loan market is declining rapidly, with eight lenders having withdrawn from the market in the past twelve months, according to Moneyfacts.co.uk.
Earlier this week, Barclays pulled the plug on its First Plus second charge mortgage business, one of the largest in the UK. Since July 2007, a number of lenders have withdrawn from the market, including Alliance & Leicester, Capital One Bank and Money Partners. Michelle Slade, analysts at Monefacts, explains: “Unfortunately, many lenders are no longer finding secured loans a viable business option. “They face the same funding issues as mortgage lenders and with house prices continuing to fall, lenders can no longer be sure that, if a consumer defaults on their loan, they will have enou...
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