High LTV second charge lending doubles

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  • 09/03/2021
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High LTV second charge lending doubles
Second charge lending rose by 14.5 per cent to £69.6m in February compared to £60.8m in January 2021, according to Loans Warehouse.

 

Its secured loan index recorded 1,768 completions last month, up 24 per cent on January, and noted that higher loan-to-value (LTV) lending doubled month-on-month.

This was influenced by high street lenders continuing restrictions on high LTVs, while options with second charge lenders expanded.

Market activity included the return of the Plus Range from Equifinance, as well as the effects of keen pricing at high LTVs from Optimum and Oplo, the broker firm added.

Spring Finance returned to second charge lending this week, with loans up to £100,000 at 75 per cent LTV.

The average term dropped from 16 to 14 years in February. Completion times also fell to 11.6 days, down 13 days in January.

The index also predicted the highest lending figures since the start of the pandemic for March.

“Demand in the months ahead will soar, with the benefits of the vaccine roll-out, schools reopening and lockdown ending,” said Loans Warehouse managing director Matt Tristram.

The most popular use of a second charge loan was debt consolidation, then consolidation and home improvement, followed by home improvement, in February.

The index is produced by Loans Warehouse and The Secured Loan Broker, based on data from second charge lenders including Optimum Credit, Oplo, United Trust Bank, Together Money, Masthaven, Norton Home Loans, Equifinance, Evolution Money and Clearly Loans.

 

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