Second charge lending soars in August
Second charge lending increased by a whopping 74 per cent year-on-year in August to £166.5m, the fourth record month of 2022.
Online broker Loans Warehouse, who compiled the data from figures reported directly from second charge lenders, said this was the fourth month in 2022 when a post-financial crisis record had been set. It was a 3.2 per cent increase on July 2022.
The annual growth has now increased again and is set to surpass £1.75bn in 2022 – another post-financial crisis record.
Loans Warehouse said the most noticeable change in August’s figures to recent months is the drop in lending above 85 per cent loan to value, down 3.33 per cent on July 2022.
Read more: Record breaking quarter for second charge lending
The data also showed that completion times have seen a slight decrease, as lenders have successfully recruited in recent months to manage the increased demand.
“As the Secured Loan Index enjoys a lot of coverage, we wanted to use this platform to mention our late Queen Elizabeth II,” said Matt Tristram, co-founder and director of Loans Warehouse.
“All at Loans Warehouse share the view that we have been honoured to live under her incredible reign and she will be deeply missed.”
Read more: Lending demand rose in Q2 as banks plan for squeeze