Secured Loan Lending To Individuals Increased In March

The latest figures from the Bank of England shows that secured loan lending to individuals increased by £0.3 billion in March.

Lending for secured loans, in which the borrowers dwelling is used as security, rose in March, according to the Bank of England, however the growth in this type of lending remained at the 12 month level of 1%. These figures are for “net lending” in which total loan repayments are subtracted from the total amount lent to show a trend in lending characteristics.

The small growth in the secured loan market was reflected in other types of lending to individuals. The number of mortgage approvals increased in March, compared to February, but was actually below the six month average. The remortgage market was slightly stronger as the number of remortgages increased in March, compared to February and also higher than the six month average.

The remortgage market has previously stagnated after the credit crunch so these figures show some renewed interest in this type of lending from both borrowers and lenders.

The overall increase in consumer credit, which rose by 0.3 billion in March does show a slight thaw in tight lending constraints imposed by lenders. This is also illustrated by a rise in the number of mortgage products now available and some of the assistance given to first time buyers by some banks.