Second charge lending market reaches pre-pandemic levels again

The second charge lending market has now hit pre-pandemic levels of lending and surpassed the £100m barrier, according to the latest Secured Loan Index from Loans Warehouse.

Figures for June revealed that second charge lending totalled £104.3m for the month, a £14.3m increase on May and the highest figure since the COVID-19 pandemic began.

Completions totalled 2,363 during June, which the index confirmed was a 9% on May’s tally.

This increase on lending did impact on completion times, Loans Warehouse added, with the average time to complete a second charge rising to 17.60 days – 3.8 days slower than the time it took in May.

In the year to date, Loans Warehouse has now recorded £493m in second charge lending, with monthly new lending figures continuing to climb.

Loans Warehouse managing director, Matt Tristram, stated: “Lending increased 16% month-on-month and highlighted an incredible 365% record breaking year-on-year increase but let's remember, this was one of the pandemic lows for second charge lending.

“A more realistic comparison would be lending figures from June 2019 which incredibly were all but identical to June 2021 with £105m reported by the FLA.”

The monthly Secured Loan Index from Loans Warehouse takes information from the biggest second charge lenders in the UK including Optimum Credit, Oplo, United Trust Bank, Together Money, Masthaven, Norton Home Loans, Equifinance, Evolution Money, and Clearly Loans.

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