Second charge lending totalled £77.6m in April 2021, a 242% increase on the previous year, according to Loans Warehouse.
The number of completions dipped below last month’s 2,000 headline, with 1,908 second charge loans being completed in April 2021, but this was still 278% up on April 2020.
Average completion times were noted at 12.80 days, 0.1 days slower than the month before.
The majority of products were provided under 85% loan-to-value (LTV) at 81.47%.
The most popular reason behind taking out a loan was consolidation at 43.13%. This was followed by home improvements at 22.19%.
Matt Tristram, managing director or Loans Warehouse, said: “Whilst month-on-month we saw a dip in lending from £91.4m to £77.6m, this figure doesn’t give a true reflection of the growth month-on-month.
“March had 23 working days compared to April at just 20; working day completions were up significantly with the daily completion volume for April at £4.57m compared to £3.97m in March – an increase of 5.2% per day.
“Higher LTV products continue to be a popular use from second charges with an increase of 2.69% month-on-month.
“Year to date we have now recorded £300m in second charges and, whilst May is an even shorter month than April, growth is widely predicted month-on-month in Q2.”