Second charge lending hits record of £155m ‒ Loans Warehouse

  • 26/04/2022
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Second charge lending hits record of £155m ‒ Loans Warehouse
The amount lent in second charge mortgages in March rose to £155.5m to set a new post-credit crunch record, according to the latest secured loan index from Loans Warehouse.

The March figure is up by 12.36 per cent on February’s total, and 12.83 per cent on the previous post-credit crunch record.

The number of second charge loans was also at a record high, at 3,237. This comfortably surpassed the previous record of 3,036m set in November 2021.

Lending across the quarter as a whole is also markedly up. The index found that lending for the three months was up by 82.62 per cent on the same period of 2021. Loans Warehouse noted that it took until June last year to reach the same level of lending seen in just the first three months of 2022.

Almost 40 per cent of the second charge loans taken out in February were for debt consolidation alone, while a little over 37 per cent were for consolidation and home improvement purposes.

The secured loan index follows industry figures released earlier this month by the Finance & Leasing Association, which suggested that the value of lending in February was up by 70 per cent year-on-year, while the number of agreements rose 59 per cent over the same period.

Fiona Hoyle, director of consumer & mortgage finance and inclusion at the FLA, noted this was the highest level of new business volumes for two years, with the market returning “to pre-pandemic levels of new business by both value and volume”.

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