Second charge lenders record bumper figures for June

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  • 15/07/2021
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Second charge lenders record bumper figures for June
Loans Warehouse has pegged second charge lending at £104.3m for June, the highest monthly figure since before the pandemic started last March.

 

The Loans Warehouse Secured Loans Index recorded growth of 16 per cent month-on-month.

The year-on-year rise reached an unprecedented 365 per cent, although Loans Warehouse cautioned this was compared to a pandemic-related low for second charge loans.

It said a “more realistic” comparison would be with June 2019, for which the reported figure from the Finance and Leasing Association was about level to this year at £105m.

The split of lending was 45.9 per cent consolidation, 26.6 per cent consolidation and home improvement, 18.7 per cent home improvement, 4.5 per cent other reasons, and at 4.2 per cent, asset. 

Some 15.4 per cent of lending was at loan to values of 85 per cent or higher.

The rise in volumes had the affect of lengthening completion times to 17.6 days on average, or 3.8 days slower compared to May.

The second charge lending total for H1 reached £493m

Optimum Lending posted lending of £37.9m in June, “believed to be the most second charge lent by a single lender since the credit crunch in 2006,” Loans Warehouse said.

There were 2,363 second charge completions in the month, up 9 per cent compared to May.

The average term was 14.3 years.

The index collates data from the UK’s largest second charge lenders and is produced by Secured Loan Broker and Loans Warehouse.

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