Second charge lending hits new high
Second charge lending reached a new post-financial crisis high in July, with annual volumes set to reach £1.7bn this year.
According to the latest Secured Loan Index from Loans Warehouse, £161.36m was loaned during July 2022.
This represents a month-on-month increase of 12.54 per cent, and a year-on-year increase of 59.34 per cent.
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Matt Tristram, managing director of Loans Warehouse, pointed out that the July volumes are 3.75 per cent higher than the previous record set in March 2022.
Annual growth continues to surpass all records since the financial crisis, he added, and second charge lenders are currently on track to lend more than £1.7bn in 2022.
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“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,” said Tristram.
“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.”
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