Secured consumer lending in the UK – predominantly mortgages, but also including car loans and other asset-backed credit – has undergone significant evolution between 2014 and 2024. Over this decade, lending practices tightened in response to post-financial crisis reforms, then adapted to new economic and technological environments. Total household debt (the majority secured on property) rose from around £1.6 trillion in 2014 to roughly £2.1 trillion in 2024, though growth in debt was largely in line with incomes​ [1]. Crucially, this period saw record-low interest rates followed by a sharp rise after 2021, shifting the landscape for borrowers and lenders. This report analyzes how secured lending practices changed, the influence of economic conditions, differences across lender types, regulatory impacts, market trends in key loan categories, and shifts in consumer borrowing behaviour. Key insights are supported by data from the Bank of England, industry groups, and regulatory reports, with visual charts and tables illustrating major trends.

Changes in Lending Practices (2014–2024)

Underwriting Standards: The decade began with the implementation of the Mortgage Market Review (MMR) in April 2014, which introduced stricter affordability checks and income verification for mortgages [2]​. Lenders could no longer rely on self-certified incomes; almost all mortgage sales became advised, ensuring borrowers’ finances were rigorously vetted​ [3]. In tandem, the Bank of England’s Financial Policy Committee (FPC) stepped in with macroprudential rules: banks had to ensure borrowers could still afford repayments if interest rates rose by 3% (a stress test), and no more than 15% of new mortgages could have a loan-to-income (LTI) ratio of 4.5 or higher​. These measures – an affordability stress test and a high-LTI “flow limit” – worked together to prevent a return to pre-2008 loose lending​ [4]. Over the decade, these underwriting rules became firmly embedded. By 2022, regulators were confident enough in lenders’ prudence that the FPC repealed the 3% interest rate stress test (effective August 2022) while retaining the 15% cap on high LTI loans​ [5]. This slight easing acknowledged improved risk practices, though lenders still generally assessed affordability carefully in line with FCA guidelines.

Table: UK Mortgage Underwriting Strictness, FTB Loan Terms, and Average Loan Balance (2014–2024)

Risk Assessment and Technology: Banks and lenders increasingly leveraged technology and data in underwriting. Credit scoring and automated decision systems grew more sophisticated, partly enabled by Open Banking (introduced 2018) giving underwriters access to richer financial data on applicants. These tools, alongside the post-2014 regulatory framework, meant credit risk appraisal became more data-driven and conservative. Lenders also had to implement new accounting rules (IFRS 9 in 2018) requiring forward-looking loss provisions, which effectively reinforced cautious lending as banks had to consider how loans might perform under stress. The outcome was that, by the late 2010s, UK mortgage lending standards were considerably more robust than pre-2008, with higher average borrower credit scores and lower loan-to-value ratios on new loans. Even as FinTech challengers (such as digital-only banks and peer-to-peer platforms) entered the market with innovative credit models, overall underwriting criteria remained disciplined industry-wide. Many new lenders focused on speed and customer experience rather than materially looser credit standards, often still targeting prime or near-prime borrowers.

Borrower Trends: UK borrowers adjusted to these stricter standards in various ways. One notable shift was opting for longer mortgage terms to improve affordability. By the early 2020s, about half of first-time buyers were taking out mortgages with terms over 30 years – a sharp rise from only a quarter of first-time buyers doing so a decade prior​ [6]. This trend accelerated after 2021 as rising house prices and interest rates made traditional 25-year loans less affordable​ [7]. Higher house prices also meant the average mortgage loan size grew substantially: by Q3 2024 the average mortgage balance was ~£196,000, about £47,000 more than a decade earlier​ [8]. Entering the market often required higher incomes and deposits; the average household income of a first-time buyer applicant in 2022 was ~£60k, reflecting the fact that lower-income households struggled to qualify​ [9]. Nevertheless, first-time buyer numbers climbed mid-decade with government support (the Help to Buy equity loan scheme in 2013–2023 helped tens of thousands purchase new-build homes with 5% deposits). Buy-to-let investors, meanwhile, faced tighter lending criteria after 2016 – the Prudential Regulation Authority (PRA) introduced stricter affordability tests for rental mortgages and interest coverage requirements​ [10]. This, combined with tax changes (e.g. reduced mortgage interest relief and extra stamp duty on second properties from 2016), cooled the buy-to-let boom. Overall, borrowers in the late 2010s were more financially resilient on paper – typified by lower average LTVs and debt-to-income ratios – thanks to the responsible lending practices established in 2014 and beyond.

Impact of Economic Conditions on Secured Loans

Secured lending over 2014–2024 was profoundly influenced by the UK’s economic climate, especially interest rates and inflation, which affect both borrower demand and loan affordability:

• Interest Rates: The period saw extraordinary swings in the Bank of England’s base rate. It remained at a historic low of 0.5% in 2014, and was even cut to 0.25% after the 2016 EU referendum shock. From 2017–2019 the base rate inched up to 0.75%, only to be slashed to 0.1% in March 2020 as an emergency response to the COVID-19 crisis. This ultra-low rate environment made secured borrowing very cheap and encouraged refinancing and new borrowing. Mortgage interest rates hit all-time lows – many borrowers in 2016–2020 obtained 2-year and 5-year fixed mortgages with rates well under 2%. However, the tide turned sharply from late 2021 onward. As inflation surged (peaking over 11% in Oct 2022, the highest in 40 years), the Bank of England responded with rapid rate rises​ [11]. By mid-2023 the base rate had climbed above 5%, a level not seen since 2008. Consequently, mortgage rates nearly tripled from their 2021 lows – the average mortgage interest rate on new loans jumped from around 1.5–1.6% in late 2021 to about 4.8% by mid-2024​ [12]. This steep rise significantly cooled the demand for secured loans and strained affordability for some existing borrowers coming off fixed deals. Lenders reported that by late 2022, new mortgage applications had fallen and they tightened credit scoring for marginal borrowers in anticipation of tougher times.
  
  
• Inflation and Cost of Living: Generally low inflation in the mid-2010s (mostly 0–2%) helped keep real incomes stable and supported borrowers’ ability to service debt. But the post-pandemic surge in prices eroded disposable incomes from 2021 onward. Higher food, energy, and goods costs meant households had less capacity to take on new debt or pay down existing loans. Interestingly, there was an inverse relationship during different phases: during 2020’s lockdowns, mortgage debt grew while consumer credit fell, as people took advantage of low rates to buy property, whereas in 2022–2023, mortgage lending slowed and unsecured debt growth picked up as high inflation forced more households to borrow for everyday expenses​ [13]. In other words, when the cost of living spiked, fewer people could afford new mortgages, and some turned to credit cards or personal loans to make ends meet. For existing mortgage holders, inflation had a mixed impact – on one hand wages started rising faster (partly cushioning the effect of higher mortgage payments), on the other hand essential spending took priority over making prepayments on debt. Notably, the household debt-to-income ratio actually declined over the decade from ~139% in 2014 to ~120% by 2024​ [14], indicating that income growth (especially nominal income boosted by inflation) slightly outpaced the rise in debt. This helped keep the average debt burden manageable in aggregate despite larger loan sizes.
  
  
• Broader Macroeconomic Trends: The UK economy’s health influenced secured lending in classic ways. Steady employment growth and low unemployment (which fell from ~6-7% in 2014 to around 3.8% by 2019) supported borrowers’ ability to obtain and repay loans. Conversely, economic uncertainty events – the Brexit referendum in 2016, for example – led to short-term dips in housing market activity and a more cautious lending stance amid volatile currency and inflation expectations. The most dramatic shock came with the COVID-19 pandemic in 2020: GDP contracted nearly 10%, yet government interventions (furlough schemes, mortgage payment deferrals, etc.) prevented a spike in defaults. In fact, during the pandemic, the Bank of England’s “stamp duty holiday” (temporary tax cut on home purchases in 2020–21) spurred a mini housing boom. Mortgage lenders faced unprecedented operational challenges in 2020, but the combination of rock-bottom rates and a desire for more space (for home-working) actually boosted secured lending demand after the initial lockdown. Approvals for house purchase rebounded to their highest levels in over a decade by late 2020​ [15]. This boom proved temporary; by 2023 the reality of higher interest rates set in, and the housing market slowed markedly. Overall, the macro environment of cheap money in the 2010s followed by a sudden jolt of monetary tightening in the 2020s created a whipsaw effect in secured lending volumes, with lenders and borrowers oscillating between expansion and caution.
  
  

High-Street Banks vs Challenger Banks vs Alternative Lenders

The UK’s secured lending market saw shifts in the mix of lender types, although established high-street banks and building societies maintained a dominant share. According to industry data, the “Big Six” lenders (Lloyds Banking Group, NatWest, Nationwide Building Society, Santander, Barclays, HSBC) still accounted for roughly 65% of gross mortgage lending by 2021​ [16]. Major banks benefited from cheap funding and large branch networks, allowing them to offer the lowest rates and capture the bulk of prime borrowers. For example, Lloyds Banking Group alone consistently held about an 18% market share​ [17]. These banks tended to lead on volume and set the tone on credit standards, closely adhering to regulatory norms and often going beyond (e.g. implementing their own lending limits or offering repayment holidays during COVID ahead of requirements).

Challenger Banks: The 2010s did see the rise of new challenger banks and specialist lenders targeting secured lending niches. Banks like Metro Bank (est. 2010), TSB (relaunched 2013), Virgin Money, and later digital entrants (e.g. Monzo, Starling, although those focused more on unsecured lending initially) aimed to increase competition. Some challengers carved out positions in areas like professional landlord mortgages, self-employed borrower loans, or near-prime credit that high-street lenders might avoid. These institutions often employed more flexible underwriting (within regulatory bounds) or faster, technology-driven application processes as a selling point. However, their overall impact on market share was modest; many challengers lacked the scale of incumbents. For instance, by 2021 Virgin Money’s share of gross mortgage lending was about 3%​ [18] and Metro Bank’s well under 1%. A few specialist non-bank lenders (often private equity-backed) grew in buy-to-let and second-charge mortgages, offering secured loans to those leveraging equity in their homes. While these lenders provided consumers with more choices, they typically charged slightly higher interest rates for the extra risk or flexibility.

Credit Unions and Community Lenders: Credit unions, cooperative financial institutions, remained a minor player in secured consumer lending. Credit union membership in Britain did grow steadily – reaching a record ~1.5 million members by 2023​ [19] – and credit unions have been “thriving” especially in serving those with limited access to bank credit. Even so, their loan portfolios are tiny relative to banks; total credit union lending nationwide was only about £1.53 billion in mid-2023​ [20], much of it in small unsecured loans. Mortgages by credit unions were rare (a handful of larger credit unions offer home loans, but in low volumes) and typically these institutions focus on short-term borrowing needs. Thus, while credit unions provided an important service in communities (and saw increased use during the cost-of-living crisis for affordable credit​ [21]), they did not significantly shape the overall secured loan market trend.

Alternative Lenders: The mid-2010s also saw the emergence of peer-to-peer (P2P) lending platforms and other alternative finance providers. Firms like Zopa and RateSetter (which launched as P2P platforms) enabled individual investors to fund loans – including car loans and some homeowner-secured loans – directly. These platforms grew rapidly for a time, offering competitive rates and often catering to borrowers slightly outside mainstream criteria. By the late 2010s, however, P2P lenders faced their own challenges: Zopa transitioned to a traditional bank model by 2020, and RateSetter was acquired by Metro Bank. 

Regulatory and Compliance Influences

Regulatory changes played a defining role in shaping UK secured lending post-2014. The era began in the shadow of the global financial crisis, prompting regulators to enact measures ensuring safer lending and borrowing. Key regulatory and compliance developments included:

• 2014 – Mortgage Market Review (MMR): As mentioned, the FCA’s MMR rules took effect in April 2014, enforcing responsible lending across all residential mortgages. Lenders had to fully verify income and assess affordability, ending the era of self-certified and interest-only loans for most borrowers​ [22]. Interest-only mortgages were now granted only with credible repayment plans, and high-risk products virtually disappeared from mainstream lending. The MMR’s intent was to prevent a build-up of unsustainable household debt and it largely succeeded – over the next several years the growth in mortgage lending was moderate and closely tied to household income growth​ [23]. The FCA later reviewed the implementation and found firms generally embedded the rules well, though a side effect was the emergence of “mortgage prisoners” (borrowers stuck on reversion rates unable to remortgage under the new strict criteria). To address this, in 2019 the FCA tweaked affordability assessment rules to help such customers switch to better deals when not borrowing more​ [24].
  
  
• 2014 – Ongoing: Macroprudential Controls: The Bank of England’s FPC introduced its aforementioned LTI cap and stress tests in 2014 to curb excessive leverage. These became a permanent feature of underwriting. Lenders responded by typically capping most loans at 4.5× income and building in interest rate buffers in their calculations. The FPC periodically reviewed these tools and, finding the mortgage market more resilient, decided in mid-2022 to remove the specific 3% interest rate rise stress test requirement (effective from 1 Aug 2022)​ [25]. However, the LTI “flow limit” was retained and remains in place – thus, even in 2024, banks must limit how much high-income-multiple lending they do. The enduring impact of these rules is evident in the low proportion of risky loans: as of 2023, only about 1% of mortgages were to borrowers with both high LTI and high loan-to-value, a much lower share than in 2007. Additionally, the PRA (another arm of the BoE) introduced explicit underwriting rules for buy-to-let in 2016, such as minimum interest coverage ratios for landlords, and tightened oversight of building societies’ lending standards (2017)​ [26]. These measures kept credit quality robust even as the market grew.
  
  
• Consumer Credit Regulation: While mortgages grabbed most attention, regulation of other secured lending also evolved. The FCA took over regulation of consumer credit in 2014, bringing entities like motor finance and second-charge lenders under stricter supervision. A cap on payday loan costs (effective 2015) and scrutiny of high-cost credit were notable, albeit affecting unsecured loans primarily. For car finance, the FCA launched investigations into mis-selling and opaque commission models. By 2019, it found some dealers were incentivised to charge higher interest to earn bigger commissions. In response, the FCA banned discretionary commission arrangements in auto financing from January 2021, forcing a fairer, more transparent pricing for car loans. This compliance measure impacted many auto finance lenders (often captive or independent finance companies), likely tightening some lending practices but improving consumer outcomes. Meanwhile, second charge mortgages (loans secured on a home but junior to the main mortgage) became fully regulated like first mortgages from 2016 under the EU Mortgage Credit Directive. This meant borrowers taking second charges (often for consolidating debt or home improvements) got the same protections (e.g. affordability checks, advice) as normal mortgage customers​ [27]. Overall, by 2024 all forms of secured consumer lending were under a strong regulatory microscope, ensuring high standards of responsible lending and treating customers fairly.
  
  
• Capital and Compliance Regimes: Banks also had to comply with globally driven regulations that indirectly affected lending. The implementation of Basel III capital rules meant banks had to hold more capital against mortgages (especially higher LTV ones), making extremely high LTV lending less attractive. The introduction of the “Senior Managers & Certification Regime” (2016) heightened accountability of bank executives for compliance breaches, further incentivizing a culture of prudent lending and customer care. Additionally, the “Consumer Duty” introduced by the FCA (effective 2023) requires lenders to ensure good outcomes for retail customers, which likely reinforces careful affordability assessments and appropriate product offerings in secured lending. Taken together, the regulatory framework from 2014–2024 greatly professionalised lending standards. By the end of the decade, industry leaders noted that these “rigorous affordability tests in place since 2014” have ensured the vast majority of borrowers can cope even with increased payments​ [28]. In 2023, as interest rates climbed, only around 1% of outstanding mortgages fell into arrears, thanks in large part to the strong compliance and forbearance practices adopted by lenders​ [29].
  

Market Trends in Secured Loans

Different categories of secured loans experienced varying growth trajectories over the past decade:

• Residential Mortgages: Being the largest segment (over 85% of household debt), mortgages largely set the overall trend. The mortgage market expanded steadily from 2014 to 2019 as the economy grew. Gross mortgage lending (all new loans advanced) in 2014 was about £203 billion and climbed to around £268 billion by 2018​ [30] (roughly doubling from post-crisis lows). This was driven by rising house prices (requiring bigger loans) and greater transaction volumes, including a resurgence of first-time buyers. First-time buyer activity, after languishing in the early 2010s, rebounded strongly – by 2021 the number of first-time purchases reached 405,000 (a 20-year high) before dipping to ~293,000 in 2023 amid tougher conditions​ [31]. Low interest rates and schemes like Help to Buy supported this growth.
  
  
  Product mix: a notable shift was the overwhelming move to fixed-rate mortgages. In 2014, roughly half of outstanding mortgages were floating; by the late 2010s, around 90% of new mortgages were fixed-rate deals (mostly 2 or 5 years fixed), as borrowers locked in low rates and lenders managed interest rate risk. This meant that when rates rose after 2021, there was a lagged effect on many households (only when fixed deals expired). 2020–2024 volatility: Mortgage lending spiked in 2020–21 (peaking with over £316 billion of gross lending in 2021, one of the highest on record) due to pandemic-era stimulus and a rush to buy homes. Then came a sharp contraction: gross lending fell to £226 billion in 2023 (down 28% year-on-year) as high inflation and interest rates bit hard​ [32]. Lending for house purchases in 2023 dropped 23% from the prior year, and buy-to-let purchase lending plunged by more than half (reflecting the particularly acute impact on discretionary landlord buyers)​ [33]. Remortgaging patterns also shifted – external remortgages (switching lender) fell, while internal product transfers (switching deal with the same lender, often with less affordability friction) actually rose 11% in 2023​ [34]. This indicates borrowers were staying put to avoid strict re-approval in a higher-rate environment. By 2024, mortgage lending was at a lower ebb, and UK Finance projected a further modest decline in house purchase lending that year ​[35]. In sum, the mortgage market grew in the first half of the decade, surged and dipped with COVID, and ended the period in a subdued state – yet with generally healthier loan books (e.g. low arrears, strong borrower equity) than in previous downturns.
  

• Secured Personal Loans & Niche Products: Outside of mortgages and car finance, other forms of secured consumer lending remained relatively small but saw their own changes. Second charge mortgages (home equity loans) had been subdued after 2008, but picked up in the late 2010s as rising home values gave homeowners more equity to borrow against. Following the regulation changes in 2016, second charge lending became more mainstream and by 2022 was on a growth trend (industry data showed new second-charge lending volumes rising, though still only a few billion pounds per year). Many borrowers used these loans to consolidate higher-cost debt into one lower-rate, secured loan – a popular strategy when credit card rates are high. Equity release (lifetime mortgages) also grew notably. Aimed at older homeowners (55+), equity release allows borrowing against one’s home with no monthly repayments (the loan repaid from the estate or property sale). Annual equity release lending hit record levels around 2018–2019 (over £3.9 billion in 2018, up from just £1 billion or so in 2014​ [36]). This market was driven by an aging population with property wealth and was facilitated by improved product safeguards (Equity Release Council standards) and lower rates. However, the spike in interest rates in 2022 affected this segment too – equity release interest rates rose, and volumes dipped slightly in 2022–23 before recovering as competition brought rates down a bit. Finally, pawn-broking and other asset-backed lending (using valuables as collateral) remained a niche for those with poor credit, with no major expansion trend; if anything, such lending was flat or declining as more people accessed credit unions or guarantor loans instead.
  

In summary, mortgages remained the cornerstone of secured lending – stable growth, punctuated by a pandemic boom and a post-pandemic slowdown. Smaller secured loan types grew from low bases, reflecting innovation in how consumers unlock the value of their assets (homes or cars) to meet financial needs. By 2024, the secured lending market was larger in absolute terms than a decade prior, but also marked by more cautious lending practices and a shift in composition (with a slightly greater role for non-bank lenders in cars, and new options for later-life borrowing, for example).

Consumer Behaviour and Borrowing Patterns

UK consumers’ borrowing behaviour evolved in response to both the opportunities and constraints discussed above. One clear pattern was consumers taking advantage of low interest rates whenever possible. In the mid-2010s, this meant many homeowners refinanced their mortgages to cheaper deals, often withdrawing some equity in the process (though home equity withdrawal remained modest compared to the pre-2008 boom). The prevalence of refinancing is seen in the product transfer figures – by 2018–2019, internal remortgaging (product transfers) had become extremely common each year, as borrowers regularly switched to new fixed rates when initial deals expired. This behaviour helped households reduce interest costs and lock in predictable payments, which proved wise in hindsight. Consumers grew accustomed to interest rates around 2–3% on mortgages and similarly low cost credit on car finance, which influenced their budgeting and purchase decisions (e.g. “Can I afford the monthly payment?” became more relevant than the total loan amount for many).

Property Purchase Trends: The decade saw a resurgence of first-time buyers, as noted, but also a reliance on joint borrowing and family support. With high deposit requirements, more than 60% of first-time buyers were buying as couples or with assistance (the so-called “Bank of Mum and Dad”). The average age of first-time buyers crept into the early 30s by 2024​ [37]. Existing homeowners, on the other hand, moved house less frequently than prior generations – partly due to high transaction costs and later, the affordability squeeze. Housing equity became more concentrated among older generations, who increasingly explored equity release or later-life mortgages (UK Finance reported over 187,000 new mortgages to borrowers over 55 in 2021, totalling £28.1 billion​ [38]). So, consumer borrowing patterns for housing showed a bifurcation: young buyers stretching out loans for longer terms, versus older homeowners borrowing against equity to supplement retirement (a trend of “later life lending” up by ~28% year-on-year in 2024)​ [39].

Shifting Preferences: Consumers also changed what they borrowed for. Car ownership via finance became normalized – rather than paying upfront, most people opted to finance new cars and even used cars, as discussed. This is a behavioural shift from the early 2000s when a far lower proportion took car loans. Another change was the rise of debt consolidation using secured loans: with home values rising, many homeowners chose to remortgage for a higher amount or take a second-charge loan to pay off costlier unsecured debts. This can be seen from the steady proportion of mortgage lending categorized as “remortgage with additional borrowing” in lender data. Essentially, households treated housing equity as a store of value that could be tapped to manage other obligations or fund big expenses (home improvements, for example). However, during the pandemic, behaviour shifted towards caution – consumers initially paid down debt with savings (unsecured debt levels dropped sharply in 2020​ [40]) and only re-leveraged once the economy reopened. By the high-inflation year of 2022, many consumers had reversed course: instead of borrowing to invest or spend on discretionary items, they increasingly borrowed to cover essentials. Surveys in late 2024 found that a significant share of Britons were using credit for basic living costs as real incomes were squeezed​ [41]. This indicates that consumer borrowing became less about chasing aspirations (homes, cars) and more about maintaining living standards under strain, towards the end of the decade.

Prudent Borrowing and Credit Health: Despite growing debt levels, UK consumers in aggregate showed prudent behaviour by some metrics. As noted, the household debt-to-income ratio fell over the period – from ~138% in 2014 to ~120% in 2024​ [42] – implying that income growth and debt repayment kept pace with new borrowing. Moreover, households benefited from the low interest environment: the proportion of income spent on debt servicing hit historic lows around 2017–2019, which allowed many to build buffer savings. Indeed, savings rates spiked during 2020’s lockdowns (with fewer spending opportunities), indirectly improving many households’ financial resilience. By 2023–2024, those buffers were tested as rates rose. Consumers responded by cutting back spending and prioritizing debt payments – evidence is the still relatively low mortgage arrears rate (only ~1% of balances in arrears in late 2023​ [43]) and a preference to negotiate solutions with lenders if trouble arose. Lenders, for their part, offered forbearance (e.g. temporary switches to interest-only or term extensions) to manage distressed borrowers, and regulators encouraged this collaborative approach. The net effect is that, unlike in 2008–09, there was no wave of household defaults or repossessions up to 2024; consumers adjusted behaviour (through budgeting, using savings, or seeking help early) to avoid default.

In conclusion, UK consumers over the decade became accustomed to easy credit conditions which fueled high participation in secured borrowing – especially for housing and vehicles – but they also proved adaptable to changing circumstances. From leveraging cheap loans to seize opportunities (buying homes, cars) to tightening belts and focusing on essential borrowing when times got tough, consumer behaviour was dynamic. By 2024, borrowers were generally more financially literate and cautious, having lived through a full credit cycle in a short span. Many knew to stress-test their own finances for future rate rises (often prompted by lenders’ rigorous questioning since 2014), and this prudence in borrowing is a key legacy of the decade’s events.

Squaring Up

The 2014–2024 decade transformed the UK’s secured lending landscape, yielding a market that is more resilient, more regulated, and somewhat rebalanced across different lender types. Lending practices were tightened through deliberate policy choices – from the Mortgage Market Review to Bank of England caps – which have made the system safer. Consumers faced both boon and bane: a prolonged period of ultra-low interest rates that made borrowing very attractive, followed by a cost-of-living shock with rapidly rising rates that tested affordability. Throughout, secured lending growth was underpinned by solid borrower demand for housing and cars, albeit moderating as economic conditions deteriorated in the latter years. High-street banks retained primacy in mortgages, while challengers and alternative financiers left their mark in specialist areas, expanding credit access at the margins. Crucially, regulation and compliance measures ensured that neither lenders nor borrowers returned to the excesses of the pre-2008 era – a fact reflected in the relatively low arrears and stable debt metrics even amid recent challenges.

The trends observed (e.g. longer mortgage terms, increased reliance on fixed rates, borrowing into older age, and use of secured credit for consumption smoothing) highlight how UK consumer borrowing behaviour evolved to navigate affordability pressures. Looking ahead from 2024, secured lending is poised to remain a cornerstone of household finance, with lenders likely to continue balancing growth and risk carefully. The past decade’s experience – from credit boom to pandemic to inflation surge – has provided a robust stress-test of the UK’s secured lending framework, ultimately demonstrating its improved sturdiness and the adaptability of both lenders and consumers in the face of change.

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