Tim Wheeldon is joint managing director of Fluent Money
Looking back over the past 12 months much has improved in the secured loan industry.
The difficult nature of the market has had one upside - it has forced an increase in competitiveness between lenders, creating a relaxation of criteria and resulting in loans being made at better rates to more people.
We are by no means returning to the level of rates that were available in 2008 but criteria are certainly more flexible than this time in 2012.
This has had the effect of slowly re-introducing ‘aspirational’ borrowing into the market.
Since the credit crunch customers have been seeking loans out of necessity, rather than for example the funding the purchase of high-end goods.
While many would say that this is an improvement in lending patterns, aspirational borrowing also shows that confidence is returning to customers and people are willing to spend again.
This may encourage lenders to loosen their purse strings further.
Now that a consistent appetite is returning this has opened up the market to new lenders.
For the rest of 2013 business volumes will continue to improve and we may also see some new entrants to the market over this summer as well as familiar faces beginning to trade again.
There is certainly more confidence in providers who generate the leads and this is going to have an inevitable downward impact on lending rates.
We are all living in a period of extended austerity that few of us have experienced before. However, people are now adapting to the situation.
While being realistic about they can and cannot afford they are ready to treat themselves again.
