This annual increase of 21% was the 16th month in a row the second charge market has grown year on year.
Commenting, Matt Tristram, joint managing director at Loans Warehouse, said: “The figures each month are speaking for themselves. The industry is now consistently completing over £30,000,000 each month as borrowers continue to benefit from cheaper rates and more diverse options.
“The market continues to become more mainstream, with the introduction of historic low rates of 5.59% (Nemo Personal Finance), early repayment notice period of 28 days with just a £195 discharge fee and LTVs up to 95% (both Shawbrook Bank), the second charge market is attracting the attention of some of the biggest names in the industry.”
Rob Clifford, CEO at If I Were You, said: “The 21% year on year hike is clearly in sharp contrast to a very gradual recovery in other parts of the lending sector – good news for consumers and the industry. Intermediaries need to continue the excellent work of raising the profile, and appropriateness, of secured loans to relevant consumers.”
The past month has seen lenders at both ends of the market improve their product offering, according to Loans Warehouse.
Shawbrook Bank enhanced its Premier Plus range, increasing loan to values up to 85% for prime borrowers, while Equifinance launched Equifinance Plus, a range of products that accommodate recent mortgage arrears, defaults and CCJs within the last 6 months but at market leading loan-to-values.
Prestige Finance, now part of the OneSavings Bank group, also released its new product range with rates starting at 6.75% for loans up to 70%.
Upon release of the new product Andy Golding, group CEO at OneSavings Bank Plc, commented: “The secured loan market is growing and we see opportunities to supply high quality products to this under-served marketplace.
“Prestige is known for its great broker service and, with many years of experience, is ready to become a competitive force in this area, including larger loan offerings targeted at those first charge mortgage holders who are unable to remortgage without losing access to their current low tracker and fixed rates.
“The new product range has been developed with input from key distributors. It is a well-priced and competitive set of products designed to provide brokers with an important new alternative source of finance in the re-emerging secured loan market.”
Matt Tristram concluded: “The new product range from Prestige Finance means for the first time in memory we have three lenders offering rates below 7% in Shawbrook Bank, Prestige Finance and Nemo Personal Finance and an amazing 27 products with rates of 9.9% or below.”