Second charge lending rose by 83pc last year
Second charge lenders reported an 83 per cent increase in lending between February 2021 and February 2022 to reach a post-credit crunch high of £138.4m last month.
According to new data from Loans Warehouse, second charge lending saw a significant rise between January and February of this year, which was partly due to an increase in the amount of money being requested.
Read more: Lendy’s head of development says he was unaware of overvaluations
In January 2022, second charge lenders distributed £111.4m in loans, with an average loan size of £44,673.90. By February, the average loan size had jumped to £46,522.
The average loan term also increased between January and February 2022, from 15 to 21.5 years.
Read more: Crowdstacker sees huge demand for property development loans
Loans Warehouse suggested that this “could be a result of the increased cost of living and a sign consumers are trying to bring payments down to their lowest level due to fears of what is coming next?”
The majority of the loans delivered in February 2022 were spent on consolidation and home improvements.
Read more: Brikkapp to launch IFISA and onboard more P2P platforms