Loans Warehouse: Second charge lending up 31%

Jake Carter

April 14, 2021

Second charge lending totalled £91.4m in March 2021, a 31.27% increase on the previous month, according to Loans Warehouse.

The number of completions also topped 2,000 for the first time since the pandemic began, with 2,202 second charge loans funded in March 2021.

Average completion times were noted at 12.70 days, 1.07 days slower than the month before.

The majority of products were provided under 85% LTV at 84.16%.

The most popular reason behind taking out a loan was consolidation at 49.37%. This was followed by consolidation and home improvements at 22.10%.

Matt Tristram, managing director or Loans Warehouse, said: “The increase in the number of high LTV mortgage products returning to the market in recent months seems to have started to impact the second charge market, with a decrease of 4.18% being recorded for loans over 85% LTV.

“The increase is also significant when you compare year-on-year, with March 2021 just 1.72% below the figures posted in March 2020 – just a £1.5m difference.

“The average completion time shows the industry is well-positioned for growth. Despite the monthly lending increasing by 21.8m, there was just a single day increase in completion time.

“Optimum Credit have today released a brand new suit of products called Optimum Plus, this product range has been designed to target under-serviced areas of the markets including newly self-employed applicants, complex and multiple income streams, benefits or variable income and offer longer terms for older borrowers.”

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