Second Charge Lending
Second charge lending surges 68 per cent in a year
Second charge lending has reached the second highest level since the financial crisis, according to data.
Growth has rocketed by 67.88 per cent year-on-year to total £150.9m in May, industry figures from Loans Warehouse showed.
Month-on-month lending jumped by 7.47 per cent. There were 3,078 completions during the month which was a three per cent uptick on April.
Lending in the year to date has reached £834m, well over double the £389m by the same point last year.
The largest driver for loans was consolidation and home improvements.
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May also saw an improvement in lender completions times, down from 22 to 15 days.
Recent data from the Finance and Leasing Association has also painted a picture of a booming second charge market.
Rising house prices have helped more people use their homes for second charge.
Higher interest rates mean a full remortgage can also be a less attractive option now than second charge.