Secured loans in the UK continue to offer an "encouraging future" despite the recent credit crunch, research has shown.

Industry analyst Datamonitor predicts that consumer demand is likely to see the total amount lent through secured loans increase in the near future.

And the disruptions caused by the sub-prime lending crisis in the US are unlikely to last for long, the organisation asserts.

Financial services analyst Maya Imberg comments: "Some lenders will withdraw from the market for a short while before returning, thus affecting the market in the short-term rather than the long-term."

The total amount provided to consumers in secured loans was £7.5 billion in 2006, figures from the firm show.

But demand is likely to see this rise to £10.2 billion by 2011 at an average compound growth of five per cent each year.

This compares with an average increase in consumer debt of 41 per cent between 2000 and 2004, as previously revealed by Datamonitor.ADNFCR-1287-ID-18322149-ADNFCR

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