Huge Rise In Property Loan Applications April 27th, 2012
There has been huge increase in the number of people applying for loans for property related purposes across the UK, from home improvement loans to bridging loans, according to the latest figures from one national loan broker.
The loan broker Borro, has said that it has seen an increase of around 661 per cent in the number of loan applications which are for property related purposes and it expects to see further increases of around 40 per cent over the course of the next twelve months, as borrowers continue to find difficulty in obtaining secured loans from traditional sources, such as bank loans.
Whilst most secured loans will only accept property as the security for a loan, Borro are prepared to accept other assets as security for the loan, which can be particularly beneficial for those home owners with a low level of equity in their home, who might not be able to get a high loan to value deal.
Borro say that one in seven loan applications they receive is for property related purposes, with the main reasons being home improvement loans, covering the cost of a second property before it is sold and bridging loans.
Paul Aitken of Borro said “The rise in property related applications in the last year suggests that some people out there are finding it hard to secure a loan in this area from traditional sources such as banks.”
“They need a solution over a short period and may are turning to their existing assets to help with that. For example, one customer borrowed £6,000 against a valuable jewellery collection to cover the costs of a property that she was struggling to sell after development. Another took out a £21,000 loan against a boat for work on a listed building.”