Total gross lending reached £352m last year, compared to £286m in 2011. December also marked the 14th month in a row of higher year-on-year lending – borrowers took out £24.5m in secured loans, compared to £20m in December 2011.

Loans Warehouse joint managing director Matt Tristram said: “Last year saw a real strengthening of the market and our data shows despite the decrease in lending, the secured loans market was still strong in December.”

Borrowers would benefit in a fall in secured loan rates since the first week of 2013, he added. “In many instances, a secured loan will now work out cheaper than a full remortgage for a number of homeowners.”

Gross lending for the fourth quarter of 2012 was £90.7m, a 27.7% increase on the same period in 2011, where the figure was £71m.

In November, secured loan firm V Loans said the average size of a secured loan had doubled in the last year to £41,000.