Home loans achieve wider availability

Posted 2007-12-15

The Council of Mortgage Lenders (CML) reported in their October News & Views an increase of the number of home loans being taken out by Britons over the previous three months.

One factor attributed to the growth comes from the noted affordability of the secured loans being offered. The intensity of this trend is expected to continue as the CML adds that “over the next three months lenders expect demand for prime lending to drive the market.”

The Bank of England published findings showing more Britons obtaining secured loans between the months of June and September last year. There was also “a decline in reported arrears [or debt] on secured lending during the last three months.”

The availability of secured loans remained consistent over the summer, while lenders currently seem to be offering fewer unsecured loans. It is “reassuring” that lenders are expecting a greater availability of secured loans in upcoming months as the Bank of England’s Credit Conditions report shows secured loans becoming more popular.

Secured and unsecured loans differ in the amount of the loan and the length of the repayment period. Often unsecured loans are for lower amounts and tend to have shorter repayment periods, while secured loans are available in greater sums and have more flexible lengths of repayment schedules.

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