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Published : September 27, 2008 |
Author : TakeNote
Category : Loans | Total Views
: 28 | Rating :  
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The secured loans marketplace was a thriving one until the last year, but over the past 12 months the downturn in world financial markets has seen the end of many firms and the mothballing of others.
In August the big lender FirstPlus closed its doors to new business and the knock on effect of that decision is now showing itself across the broker market in the UK.
The closure of Loan Line, a long established loan brokerage owned by Accuma is one of many closures in the past couple of months. The dependence of the market on FirstPlus is dramatic.
Accuma only bought Loanline in 2006, at a time when the secured loans market was thriving, but things look very different now. Secured loans are one type of loending that carries additional risk for lenders and hence the need to secure them against a suitable asset like home equity. But with house prices falling rapidly and likely to continue to fall for the foreseeable future, secured loans having quickly become a risky area.
LoanLine made a loss of £196,000 in the first six months of 2008.
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