Second charge lending reaches £1.71bn in 2022
Second charge lending is up 45 per cent year-on-year, finishing 2022 at £1.71bn, according to figures released by Loans Warehouse.
According to the latest Secured Loan Index from Loans Warehouse second charge lending dropped for the fourth month in a row to £101.5m in December. There was also a 26 per cent decrease since November on completions to 2,150.
Consolidation and home improvements accounted for the largest portion of loans at more than 40 per cent.
Read more: Record breaking year for second charge lending
Loans Warehouse said that the percentage of lending about 85 per cent LTV increased over the month by nearly 2 per cent, the highest seen since July 2022.
“One of the biggest impacts on mortgage lending during the pandemic has been on the level of equity available to borrowers,” Loans Warehouse said. “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 per cent LTV.”
Meanwhile completion time from submission, standing at 18.9 days, remained steady.
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