In February there were £138m in second charge loans up from £70m in the same month of 2021, according to Loans Warehouse. It is also up from around £111m in January this year.
The report added that the number of loans written had remained roughly stable at around 2,500 for both December and January, but had risen by 19 per cent to 2,976 in February compared to January.
The average loan size has increased to £46,522 in February, which is up from £44,674 in January.
Loan terms also increased over the month to an average 21.5 years in February from 15 years in January.
Loans Warehouse said this could be a sign that consumers are trying to keep payments down as the cost of loving rises.
Around 40 per cent of loans were for consolidation, and roughly 40 per cent was for consolidation and home improvements. Nearly 15 per cent of loans were for home improvements.
The report added that nearly 85 per cent of loans in February were below 85 per cent loan to value (LTV) and 15 per cent was above 85 per cent LTV. It said that this could be due to second charge lending offering an alternative method of raising capital due to pandemic restricting the amount of equity borrowers could access.
Second charge lenders reported their figures directly to Loans Warehouse.
In the three months to January there had been 6,874 new second charge mortgage agreements and in the 12 months up to January there were 26,642 new second charge mortgage agreements, according to the FLA.