Loans Warehouse: Second charge lending breaks more records

Loans Warehouse issue their latest Secured Loan Index, which shows second charge lending still breaking more records (July 2022).

Key highlights from report:
  • Second charge lending totalled £161.36 million in July 2022, figures reported directly to Loans Warehouse from second charge lenders confirm.
  • July’s figures represent a 12.54% increase on June 2022, an annual increase of 59.34%, and a new post-credit crunch lending record, up 3.75% on the record set in March 2022.
  • The annual growth continues to surpass all records since the financial crisis, currently tracking to lend over £1.7 billion in 2022.
  • We continue to see a drop in the use of a second charge for pure home improvements, but interestingly an increase in those borrowing for a combination of home improvements and debt consolidation.
  • Completion times continue to increase slightly which can be linked to the sheer volume of business being written and businesses adjusting their recruitment to meet demand.
Key metrics:
Volume lent £161.3m £18m increase on June 2022
Completions 3,337 11% increase on June 2022
Types of loans 4.23%

37.59%

40.48%

 

14.02%

3.67%

 Asset

Consolidation

Consolidation and home improvements

Home improvements

Other
Average completion time (from submission to completion) 18.97 days 1.72 days slower on June 2022
Average term 14.87 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 83.3%

16.7%

 Below 85%

Above 85%

 

 

Kindly shared by The Loans Warehouse

Main photo courtesy of Pixabay