Second charge lending hits £140m in April

However, Loan Warehouse’s secured loan index showed this was down by £15.1m on the £155.5m lent in March. 

There were 3,000 completions in April, a seven per cent decrease on the 3,237 completions in March. 

Loan Warehouse noted the 19 working days in April were fewer than the 23 in March which resulted in a nine per cent dip in overall volume. Despite this, the daily average lending amount in April rose compared to the previous month. 

Lending in 2022 has now passed half a billion and currently stands at £545,913. Loans Warehouse said lending was on track to surpass £2bn in a 12-month period for the first time since 2007. 

Average completion times were flat at 22 days, as was the average 21 year product term. The loan to value (LTV) split was also static, with 84 per cent of loans being below 85 per cent LTV. 

The use of second charge loans remained the same when compared to March with the majority being used for either consolidation or consolidation with home improvements. These accounted for 40 per cent of loans apiece. 

Matt Tristram (pictured), co-founder and director of Loans Warehouse, said: “As the increase in second charge lending continues, lenders are working hard to maintain service levels and our own experience has seen that most have now increased capacity as the record lending levels only look to continue. 

“Second charge loans are being more widely used. With record low rates and variety of products, they are clearly now at the forefront of more mortgage professionals’ minds than at any point in Loans Warehouse’s 16 years of trading.”