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Over the past few years, secured loan lending has seen a decline in the market. Secured loans were particularly popular in 2007, but after the recession house prices fell and people could no longer afford to take out loans secured upon their property. Now according to the loan broker, the Loan Warehouse, the market is now starting to pick back up again.

The Loans Warehouse claims that January 2011 has been its best ever January to date. The company has been running for four and a half years. Now that the market is recovering, lenders are starting to introduce new secured loan deals. Now consumers can find competitive interest rates on a variety of secured loan deals.

A spokesperson from the Loans Warehouse, Matt Tristram, states:

“It has been an amazing start to 2011. Historically January is a quiet month for secured loan brokers but this year has been completely different. The demand has always been there but now we are starting to feel, more than ever, that lenders actively want to lend.”

He then goes on to say:

“The latest figures released by the FLA would suggest that almost 1 in 20 secured loans that complete, complete through Loans Warehouse. This is a fantastic statistic and one we’re all extremely proud of. Now lenders like Jigsaw Money and Central Lending are definitely making a difference.”

Now the Loans Warehouse has teamed up with Portal Portfolio to offer secured loans on buy to let properties. The loans will give people the chance to borrow up to 80% LTV. This is currently around 15% higher than other lenders in the market. The Portal Portfolio has only been available to mortgage packagers up until now.

The managing director of Portal Portfolio, Tim Moore, states:

“Loans Warehouse are a well respected and high proactive organisation and we are delighted to be working with them. They are very switched on when it comes to providing niche customers with the best opportunities, and we are confident our BTL offer in particular is going to prove popular with Loans Warehouse customers.”

The revival of the secured loan market is said to be partly due to current low interest rates. Some experts are predicting that these rates will stay around until late 2011. However, there are also some who are sceptical and they think that a rate rise will not be far away. In order for the housing market and the secured loan market to get fully back on track, the rate would need to remain low for at least another six to twelve months.

There is even set to be another competitor in the secured loans market this year. Late last year it was announced that Kensington was set to get back into secured loan lending in early 2011. A spokesperson for the company states:

“The secured loans sector is an industry we have been successful in previously and is one of the opportunities we are investigating currently.”

While there is still a long way to go, the revival of the secured loans market is definitely a good sign of economic recovery in the UK.