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Second charge lending surpasses £1bn mark – Loans Warehouse

  • 15/12/2021
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Second charge lending surpasses £1bn mark – Loans Warehouse
As predicted last month, annual second charge lending has passed the £1bn mark for the first time since 2019 and now stands at £1.062 billion.


This benchmark was hinted at in the Loans Warehouse report for October.

According to Loans Warehouse’s managing director Matt Tristram, the second charge market last reached this figure in 2019. He said the £1bn target was a “benchmark for success for second charge lending”.

Its Secured Loan Index report highlighted that in October, the volume of second charge lending came to around £123.6m, which is up £13.4m on the previous month, and the highest recorded under Financial Conduct Authority (FCA) regulation. The previous peak was in 2019 at £118m.

The Q4 figures mean second charge lending witnessed its highest period of lending since 2008 and has hit a post-credit crunch record with an 11.49 per cent increase on the previous month.


Year-on-year increase

However, November’s figure exceeded October’s peak as lending totalled £137.8m, with a year-on-year increase of 71.67 per cent.

The month also saw the number of loans written break the 3,000 barrier for the first time since 2008, with the 1,000 annual rise proving to be another post-credit crunch record.

The average completion time increased slightly in December but considering the growth in the last two months, it is widely considered that lenders’ service levels are being met and the increase is more reflective of delays caused by a Land Registry backlog.

Consolidation and home improvements accounted for 32 per cent of second charge loans, while consolidation alone made up 43 per cent of lending which was the largest share. Home improvements alone made up 18 per cent of second charge loans in November.

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