London, UK (PRWEB) April 25, 2007
The secured loan market is thriving with more people borrowing more money and arranging longer repayment terms, according to the latest 'Loan Market Monthly Report' from loan experts Compare First. Compare First examined thousands of loan applications to draw their conclusions, which make essential reading for all loan seekers and providers.
The majority of applications, 60 per cent, came from men. Not only did fewer women apply for loans but the average loan amount they requested was half as much, though the average repayment term was more or less the same. There's been a lot of talk recently about the return of the cad, something commentators believe may be lined to a hankering women have for pre-PC values and more distinct gender lines. Whether this is true or not is, of course, a moot point; but three times as many female loan applicants preferred to be referred to as Miss rather than Ms.
Most people wanted secured loans for amounts between £10,000 and £25,000. A third of applicants were for sub £10k loans with a fifth for loans above £25,000. The average amount requested was £22,514, an increase of 2.3% from last month.
Despite being offered a choice of repayment terms from one to twenty-five years, most people selected to repay their loans in years in multiples of five. Ten year, fifteen year, twenty and twenty five year terms were all popular, with the five year term most popular of all. It and the ten year term were chosen by more than half of everyone who wanted a loan.
One of the most interesting things about the Compare First report is the value people place on their own home. This provides a different take into the housing market because most applicants determine what they think their house is worth, rather than basing it on a valuation. Since this price indicates what people expect to get from their home, and that we're in a sellers market, this self-valuation may well indicate where the market is heading. Last month, the average house value declared by applicants was £230k with 90 per cent of people saying their home was worth more than £100,000.
Martin Edwards, Director of Customer Satisfaction at Compare First said the report showed the increasing desire people have to borrow money, whether to consolidate debts, pay for home improvements or a to buy a new car or holiday. "People are utilising the equity in their house for a variety of different reasons," Edwards said, "loans are the engine of the British economy and British people are borrowing in huge numbers."
Edwards cautioned against excessive borrowing and advised all those seeking loans to search around. "Many brokers will offer a low 'typical' APR but be sure and check the rate you're offered is the best you can get. Don't forget that brokers will need to speak to you and that rates vary enormously based upon personal circumstances," he said.
For more information and the best choice of cheap loans visit http://www.comparefirst.co.uk.