Loans Warehouse: Secured Loan Index records record-breaking year
Loans Warehouse issue their latest Secured Loan Index, which shows the Index records a record-breaking year.
Key points from publication:
-
- Second charge lending dropped for the fourth month to £135.5 million in November 2022, figures reported directly to Loans Warehouse from second charge lenders confirm.
- Yet, despite the reduction in lending in recent months, the industry is already recording the highest annual figures since 2007 – up 36.82% year to date – with second charge lending at £1.61 billion for 2022.
- Lending at higher LTVs dropped slightly, with just 13.74% of loans completed in November at 85% LTV or above.
- The average term of a secured loan has increased by 12 months, potentially linked to lenders’ affordability being stretched more than ever before in recent times.
- Finally, many lenders have significantly improved their completion time, likely a result of a dip in the record-breaking lending levels seen across the summer months.
- Selina Finance continued their revamp of their product range with the reintroduction of a fixed rate product and the launch of their new one status range.
Key metrics:
Volume lent |
£135.5m |
£14.7m decrease on October 2022 |
Completions |
2,908 |
6% increase on October 2022 |
Types of loans |
0.46% 46.55% 34.08%
14.89% 4.02% |
Asset Consolidation Consolidation and home improvements Home improvements Other |
Average completion time (from submission to completion) |
18.43 days |
2.44 days faster on October 2022 |
Average term |
17.5 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 |
86.26% 17.74% |
Below 85% Above 85% |
Kindly shared by The Loans Warehouse
Main photo courtesy of Pixabay