Loan Modification & Selection Portals

The Credit Crunch has dominated the news for the last 12 months and it looks set to stay in the media spot light for sometime to come. Every industry is feeling the pinch, construction, motor trade and of course our banks, Sectors That flourished in the boom years fueled by the ease to access credit have experienced both side of the economy time line, great highs and record profit in the good times, great lows with record losses and mass redundancies in the bad times.

No exception to these extremes is the UK secured loan market soaring to great heights in the boom years; loan brokers, lender and to an extend lead generators enjoyed almost a full decade of healthy growth. The Credit crunch has hit all sectors of the industry hard and all segments of the market have made cutbacks.

Funding has dried or become too expensive to obtain for many lenders with big names having to close their doors. Picture Financial, First Plus, Future, EPF, GE money and Paragon to name a few that no longer offer secured loan products. Some have closed the secured loan arm of their business modules and focused on other financial services whilst others have been less fortunate and have had no choices but to close down their entire operation.

The Funding issues that have taken so many lenders out of the secured loan market have inevitably had a knock effect on the secured loan brokers. The Decline in the amount of lenders available to loan brokers and the very restrictive criteria placed upon them by the few lenders remaining processing an application has become very difficult. The result has lead to brokers seeing a massive decrease in the number of completed application and therefore a big declines in revenue. This area of the market has also experienced large cuts backs with many brokers either laying off staff or closing their doors entirely.

Entering quarter 2 of 2009 the secured loan market is on the verge of collapsing and with still no signs on the horizon of conditions improving riding the toughest storm the industry has experienced is an ever-increasing battle.To be still standing when 2010 come around may only be possible by diversification loan brokers approaching there client banks offering them something different, holding out until secured loan lenders renter the market but when that will be is anyone’s guess. One thing is for sure though we are still only a few months into 2009 as a far and the secured loan market goes this year is already a right off. Hopefully 2010 will bring stability and better market condition but only time will tell.