Secured Loans Rising In Popularity

Fri, 25 Apr 2008

The rapid rise in the popularity of secured loans has led to a rise in debt amongst the nation’s young, new figures have revealed.

Figures from the Mortgage Introducer Statistics revealed that more than 50 per cent of Britain’s young people are in debt by the time they reach the age of 17.

The website added that young Brits are increasingly turning to overdrafts and credit cards as they allow them to easily spend more than they can afford, "setting a pattern for the rest of their life".

Furthermore, research conducted by Alliance and Leicester states that "overall borrowing trends are moving away from unsecured debt, while secured lending continues it’s rapid pace".

Mervyn King, Governor of the Bank of England, said: "The high street lenders plan to significantly reduce the amount of money they are prepared to make available to businesses over the next few months."

King added that with regards to the smaller UK companies, banks were expecting applications for secured lending to steadily continue to increase over the next quarter, while expecting the application for unsecured lending loans to decrease.
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