Loans Warehouse: Secured Loan Index – Second charge lending up 45.3% in 2022

Loans Warehouse issue their latest Secured Loan Index, which shows the Index records a record-breaking year.

Loans Warehouse issue their latest Secured Loan Index, which shows second charge lending is up 45.3% in 2022.

Key points from publication:
    • Second charge lending reduced for the fourth consecutive month to £101.5 million in December 2022, figures reported directly to Loans Warehouse from second charge lenders confirm.
    • Despite the recent fall, total lending for 2022 finished at £1.71 billion which is an increase of over 45% year-on-year.
    • The percentage of lending above 85% LTV increased in the past month, up just shy of 2% on November 2022, the highest increase since July 2022.
    • Completion time from submission has remained steady throughout the month, currently standing at 18.9 days.
Key metrics:

Volume lent

£101.5m

£34m decrease on November 2022

Completions

2,150

26% decrease on November 2022

Types of loans

4.23%

27.59%

40.48%

 

14.02%

3.62%

Asset

Consolidation

Consolidation and home improvements

Home improvements

Other

Average completion time (from submission to completion)

18.90 days

0.47 days slower on November 2022

Average term

16.10 years

 

 

LTV split:

One of the biggest impacts on mortgage lending during the pandemic has been on the level of equity available to borrowers. Second charge lending continues to offer an alternative method of raising capital for many, as such we will have highlighted the split of lending over 85% LTV.

LTV Split

84.30%

15.70%

Below 85%

Above 85%

 

 

Kindly shared by The Loans Warehouse

Main photo courtesy of Pixabay