Nice Loans.co.uk > News > Cheap secured loans choice shrinks

Secured loans choice is smaller

A number of providers of secured loans in the UK have been reviewing their product ranges and in the light of the credit situation that has blighted the industry, have taken steps to cut their choice of products, leaving anyone searching for a cheap secured loan with less choice.

The financial situation that has affected much of the loans marketplace has been more acute in the area of secured loans, given that these are the loans that rely on home equity, which is directly linked to property prices, to form their basis. Loan applicants requesting smaller amounts of money or who have clean credit records with stable means of reliable income would normally be eligible for an unsecured loan or personal loan, But those people who do not fall into that category for whatever reason, and there is a large percentage who don't now, also have the choice of opting for a secured loan. The otherwise unsuitable eligibility for unsecured lending, due to increased risk for the lender, is mitigated by the securing of some valuable collateral against the loan, usually a property, therefore reducing the risk of the borrower defaulting and the loan not being repaid.

The linchpins of the secured loans market in the UK over recent years have been increasing property prices and freely available cheap credit on the world's financial markets. However both these factors have been significantly impacted over recent months, forcing lenders to review their loan portfolios and in many cases this has resulted in a pruning of the secured loan product set.

Paragon is just one lender that has found itself in that situation and has been forced to both review some products and drop others. It's Advantage range of secured loans that were provide in partnership with Morgan Stanley has been suspended.

<<< Return to news page | Request a cheap loan quote >>>