Michael Coogan, the former director general of the Council of Mortgage Lenders (CML) and now strategic adviser at Loans Warehouse, has claimed that the substantial interest from first time buyers since the launch of the Help to Buy mortgage guarantee scheme last month will indirectly benefit the secured loan market as well.

He said: “The new government scheme will continue to grow as more lenders launch products in the New Year. In the meantime, the mortgage market is ‘open for business’ according to the CML, and this is reflected in a range of lenders offering higher LTV products at 95% outside the help to buy scheme.

“Increased activity in the market will continue to flow through to higher activity levels for secured lenders and brokers as well, with increased consumer confidence and a large group of home owners unable to remortgage or get a further advance from their mortgage lender.

“With Christmas on the horizon, the key for borrowers is to take realistic views on what they can afford and make sure they can continue to pay their loans even if interest rates were to increase sooner than previously anticipated.”

Coogan added: “2014 is the year in which secured loans will grow from strength to strength.”