Number of secured loans increases

Posted 2008-04-24

The number of people in the UK taking out secured loans over recent years has risen, it has been claimed.

Quoting research from Alliance & Leicester, the price comparison site Onlyfinance.com claims that more people are moving away from taking out unsecured loans.

It states that the increase in secured borrowing is a result of the credit crunch and the continued uncertainty in the financial markets.

Research by Alliance & Leicester discovered that "overall borrowing trends are moving away from unsecured debt, while secured lending continues its rapid pace.

Figures also show that secured loans are proving to be a popular method of debt consolidation for many in the UK, according to the site.

It claims that the fact that secured forms of borrowing reduce the ability to acquire further debt appeals to many consumers, as well as the fact that interest rates can be significantly lower than on an unsecured loan.

Recently released figures from the British Banking Association revealed that borrowing on personal loans declined by 0.2 billion in March.

Leave a Reply