| Remortgages,
mortgages and secured loans all suffered a decline during the
recession
Before
the recession started, right up to the beginning of 2007,
the remortgage, mortgage and secured loan industries were
vibrant and business for both the lenders and brokers was
brisk.
There
were more than twenty secured loan lenders lending both directly
to consumers and also through intermediaries.
All this
started to change at the very start of the recession, with
some of these lenders going out of business, not so much because
of lack of willing borrowers, but partly due to the tightening
up of criteria to such an extent that many who would have
benefited from a secured loan for debt consolidation were
no longer eligible.
Another
reason why so many of these homeowner loan providers ceased
trading was because they themselves could no longer find a
backer to continue providing them with the necessary funding.
By the
end of the recession there were only four homeowner loan lenders
left.
The number
of secured homeowner loan brokers also diminished mainly due
to, not only a shortgage of customers, but because the homeowner
lenders who still existed limited their intermediary panel
to only a handful of major brokers leaving the smaller fry
out in the cold.
There
is now hopefully some light at the end of the gloomy secured
loan tunnel with the re emergence of Link Loans to the market
with their new backers RBS providing their funding in place
of Barclays.
Paragon,
the Midlands based secured loan lender, stopped advancing
new loans but continuesd giving further advances.This yet
again was caused by lack of adequate funding.
It is
rumoured that Paragon is on course to return to grantng secured
loans later this year.
Because
of the fall in property values no one was prepared to apply
for a mortgage to either buy their first home or to move house.
The greater
stability appearing in the housing market is now encouraging
people to buy property once more which is yet again a bright
light of hope.
Remortgages
suffered a similar fate as secured loans and mortgages had,
and several mortgage and remortgage lenders ceased trading,
and the number of remortgage and mortgage products available
fell dramatically.
Now renewed
hope is being witnessed in the remortgage sector with the
number of remortgages available reaching the 2,000 mark, having
fallen to about 1,400 during the credit crunch.
There
are clear signs that homeowner loans, mortgages and remortgages
are all showing signs of improvement.
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