Despite the US subprime crisis and ensuing credit crunch, the UK personal secured loan market is forecast to grow over the next four years. Market research company Datamonitor predict that the growth in demand for loans secured against a borrowers property to hit five per cent a year over each of the coming four years. That would increase the UK personal secured loan market from £7.5 billion worth of loans in 2006, to over £10 billion by 2011.
This increase is forecast to arrive despite predictions of the cost of secured loans rising in the months and years to come. The subprime crisis was an urgent reminder to lenders not to take on too great a risk, meaning credit standards have since been tightened and it will become less easy to take out a loan. Some lenders have even pulled out of the secured loans market completely.





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