Second charge lending up a third in October at £150.2m – Loans Warehouse

According to Loans Warehouse’s Secured Loans Index, this is the fifth best lending month of 2022, but is down by £10.2m compared to September.

The company said several lenders had temporary paused fixed rate products in September and October, partially driven by volatility from the mini Budget. As fixed rate deals are popular amongst customers this could partially explain the slight drop, it noted.

However, Loans Warehouse said the sector was “starting to see the majority reprice and this option return”.

Second charge lending hit the £1.5bn mark

The firm added that second charge lending had hit the £1.5bn mark for 2022.

Completions in October came to 2,744, which is nine per cent down on the prior month.

The most popular type of loan was consolidation at around 42 per cent, followed by consolidation and home improvements at around 35 per cent and home improvements alone at approximately 16 per cent.

Average completion times, which is from submission to completion, was pegged at 20.87 days, which is 0.31 days slowed than September.

The average term was 16.5 years, and the majority of loans, around 86 per cent, were below 85 per cent loan to value (LTV).