Loans Warehouse: Second charge lending reports record-breaking Q2

Loans Warehouse issue their latest Secured Loan Index, which shows second charge lending reports a record-breaking Q2 (June 2022).

The Secured Loan Index is a monthly infographic brought to you by Secured Loan Broker, Loans Warehouse, and takes information direction from the biggest second charge lenders in the UK including: Pepper Money; Oplo; United Trust Bank; Together Money; Norton Home Loans; Equifinance; Evolution Money; and Selina Finance, along with our own market knowledge to produce an accurate reflection of lending.

Key highlights:
  • Second charge lending totalled £143.3 million in June 2022, figures reported directly to Loans Warehouse from second charge lenders confirm.
  • June’s figures represent a 5.03% drop compared with May’s, but a 37.41% increase on June 2021.
  • The annual growth continues to surpass all records since the financial crisis, as Q2 reports the highest quarter lending since 2007, up 7.25% on an already record-breaking Q1 and £840.2m lent year to date.
  • 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.
  • Completion times are up slightly in June, but May saw a big decrease from previous months, so this wasn’t unexpected.
  • Elsewhere in second charge lending…
  • Oplo introduced the industry’s first Green Second Mortgage discounted product, as they begin their migration across to Tandem Bank Group, whilst also increasing their maximum loan from £100,000 to £250,000.
  • Spring Finance secured funding from NatWest as well as relaunching their entire range including an interest only buy-to-let product.
  • Selina Finance revamped its residential range with enhancements for self-employed applicants as they ramp up lending leading into Q3.
Key metrics:
Volume lent £143.3m £7.6m decrease on May 2022
Completions 3,014 2% decrease on May 2022
Types of loans 1.99%

41%

37.2%

 

15.57%

4.23%

 Asset

Consolidation

Consolidation and home improvements

Home improvements

Other
Average completion time (from submission to completion) 17.25 days 2.25 days slower on May 2022
Average term 15.81 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 82.24%

16.76%

 Below 85%

Above 85%

 

Kindly shared by The Loans Warehouse

Main photo courtesy of Pixabay