Second charge lending bounced back in March
Second charge lending rose by more than 20 per cent in March in a sign that second charge lenders are regaining confidence in the market.
According to the latest figures from Loans Warehouse, second charge lending increased to £135m in March, a 20.85 per cent increase on February’s volumes.
Although volumes are still down by 6.49 per cent year on year, Matt Tristram, managing director of Loans Warehouse said that “this growth is considered a clear sign that second charge lenders are feeling confident for the first time since the October 2022 mini-budget.”
Read more: Second charge lending falls to 18-month low in February
During the first quarter of 2023, Loans Warehouse reported that overall second charge lending figures were down by 15.85 per cent compared with the same period in 2022.
“It was fair to say that when March 2022 figures were released the market was considered buoyant,” added Tristram.
“Unsurprisingly figures for Q1 are also down, 15.85 per cent below the same period in Q1 2022”.
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The figures also showed a two per cent rise in lending with a high loan-to-value. The average time taken to complete a loan was 13.6 days in March.
Furthermore, Loans Warehouse noted that several lenders reduced their rates in March.
“Selina Finance decreased rates on both their two and five-year fixed rate products, whilst Spring Finance followed suit and made further price reductions to their near-prime range,” Tristram said.
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