The secured lending market will return to pre-Covid-19 levels in the first quarter next year, Loans Warehouse has predicted.
The credit broker’s index for last month – which was produced with Secured Loan Broker and collected information from the market’s largest second charge lenders – showed that secured lending reached £80.2m in November.
This all but confirmed Loans Warehouse’s prediction in October that second charge lending would double in the fourth quarter this year from £43m in August, according to the Finance & Leasing Association.
Now, Matt Tristram, co-founder of Loans Warehouse, has predicted that in the first quarter of 2021 lending volumes will return to pre-coronavirus volumes and may even break the £100m barrier.
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“The secured loan industry confidently stated at the start of lockdown two that it was business as usual and that is exactly what the results show, with continual improvements to both product ranges and service reported throughout November,” Tristam said in a blog post on Loans Warehouse’s website.
“We’re now predicting that the first quarter of 2021 will see lending volume return to pre-pandemic levels, with rumours that several lenders have new product ranges and significant pricing decreases planned for the start of 2021.”