According to the latest figures from Loans Warehouse, second charge lending in December was pegged at £118m, which is up 76 per cent on the same period last year. The report added that Q4 last year had the highest for the quarter on record since 2008.
It continued that overall, second charge lending in 2021 came to £1.18bn, which is the first time it has passed the £1bn mark since 2019.
Brokers and lenders have said that the second charge market is set for further growth this year, pointing to an increase in the cost of living and working from home encouraging people to make property improvements.
Other factors that could fuel second charge mortgage growth include a high number of mortgage products expiring this year, growing popularity of long-term fixed rates and changes in borrowers’ circumstances.
This week in the Mortgage Solutions’ poll we want to know whether brokers are preparing to sell more second charge mortgage loans to customers to fill the the affordability gap.
Brokers: Are you ready to sell more second charge loans direct to close any remo affordability gap?