Secured lending 'robust'
29/11/2006The secured loans market has remained "robust" during recent times, according to a leading analyst.
Commenting on figures released by the British Bankers Association (BBA), director of statistics David Dooks made the statement after noting that gross mortgage lending in October was six per cent higher than it had been the previous month.
"The secured lending market undoubtedly remains robust," Mr Dooks said.
"October's loan approvals were boosted by remortgaging, as customers look to fix or reduce their mortgage costs, but this activity, with customers changing their lender, has no significant effect on net lending marketwide."
Net lending on loans and overdrafts rose by £0.8 billlion during October, comparing favourably with the rise of £0.3 billion in September.
In contrast, the amount given out on credit cards actually fell by £0.4 billion in October and has shrunk by an average of £0.2 billion over the last few months.
"Credit card lending continues to contract, with relatively lower spending levels this year, being exceeded by repayments in most months so far," Mr Dooks added.
During the last five years, the secured loans market has enjoyed unprecedented growth of as much as 50 per cent a year, as good performance in the housing market has meant Brits have more equity in their property to borrow against.
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