Second charge lending reached £143.3m in June to close out a record-breaking second quarter.
According to the latest Secured Loan Index from Loans Warehouse, the growth of second charge lending “continues to surpass all records since the financial crisis”, with lending reaching its highest level since 2007 in the second quarter of this year.
£840.2m has been lent in the year to date via second charge lenders such as Together Money and Selina Finance.
Lending volumes were up by 7.25 per cent on the first quarter of the year, despite a slight dip in lending in June.
“June’s figures represent a 5.03 per cent drop compared with May’s, but a 37.41 per cent increase on June 2021,” said Matt Tristram, co-founder and director of Loans Warehouse.
“We’re seeing a shift in the use of a second charge, with the number of home improvement loans starting to fall slightly, potentially linked to the rising cost of living and materials.”
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Completion times rose slightly in June following a big decrease in May, with the average loan being processed within 17.25 days – 2.25 days slower than in May 2022.
The average term time was 15.81 years in June 2022.
Approximately 95 per cent of all second charge loans were used for consolidation, home improvements, or both.