Steady as she goes for the UK’s Secured Loans market

The market for secured loans – or second-charge mortgages – in the UK is expected to accelerate after a disappointing end to 2016, according to analysts. The value of these loans grew by just 4% in the year to December 2016 thanks to the implementation of the Mortgage Credit Directive and uncertainty caused by Britain’s vote to leave the European Union in June. A report by Enterprise Finance found that while the first half of 2016 saw rapid growth in the market, demand fell during the second half of the year. The Mortgage Credit Directive compels loan brokers to offer secured loans as an option to customers as well as other credit products. It also brings secured lending under the oversight of the Financial Conduct Authority instead of just the Consumer Credit Act. Its implementation in March 2016 saw demand for secured loans fall by 41% to £51 million. Enterprise Finance said that growth picked up again in May but then fell again following the Brexit vote. However, demand fo


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