The Rise of Alternative Lenders

The economic crash of 2008 resulted in dramatic changes in the UK financial market. The market, which was largely reliant on the housing sector, plummeted, leaving the world in global recession. House prices and transaction volumes fell suddenly, and bank lending slowed to a trickle.

The market has managed to claw its way back over the past ten years, and has recovered (and in some cases exceeded) pre-crash levels. Banks have addressed the issues that led to the collapse and have increased the levels of security surrounding funding.

However, the recession left its mark. Those who were unable to get a traditional loan from a traditional banking service, were now looking for alternatives. This change sparked the rise in the alternative lender, and a rise in alternative lending as a means to secure a mortgage.

Alternative lending is a very broad term used to describe the options available to those seeking to borrow outside of the traditional loans available with the bank.

Historically, financial advisers have been averse to recommending alternative lending for clients. But as banks tightened their grip and loans became more difficult to come by, more clients than ever looked to their financial adviser to source alternative finance for them.

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