Many lenders are no longer finding secured loans a viable business option, according to new research by an independent financial information provider.
A survey by Moneyfacts.co.uk found that within the last year, eight lenders have withdrawn from the secured loan sector including Alliance & Leicester, Capital One and most recently FirstPlus.
The website suggests this is unfortunate and commented that the demand for secured loans is still popular as they allow consolidation of debts for up to 25 years, unlike the maximum ten years offered by unsecured loans.
A spokesperson for Moneyfacts.co.uk said: "If the credit crunch can cause one of the biggest lenders in secured loans to throw in the towel, it will be interesting to see if the other providers can weather the storm."
Barclays cited "slowing demand" as the determining factor in its decision to close the subsidiary loans business FirstPlus, which was once the market leader in secured loans.
JST Financial, Unsecured, Personal loan Specialists catering for good and adverse credit for tenants and homeowners