Second charge lending surge continued in May – Loans Warehouse

Second charge lending totalled £150.9m in May 2022, according to figures reported directly to Loans Warehouse from second charge lenders.

May’s figures represent a 7.47% growth month on month and the second-highest lending total since the credit crunch.

The annual growth is almost unprecedented with a huge 67.88% growth from May 2021, whilst year-to-date lending has now reached £834m, well over double the £389m by the same point last year.

Additionally, May saw an improvement in lender completion times, down from 22 to 15 days (receipt to offer).

Matt Tristram (pictured), director and co-founder of Loans Warehouse, said: “These figures show that the second charge market is continuing to go from strength to strength.

“With lenders increasing first charge rates on an almost daily basis the appeal of second charges continues to grow as a viable option for accessing funds without the need to remortgage.

“We expect that this trend will continue as the first charge market continues to reprice. I’d call on all brokers to ensure they are up to date on the latest opportunities in the seconds space.

“Specialist packagers and master brokers are on hand should they need assistance in helping their clients achieve the best borrowing outcome.”

Figures from the Finance & Leasing Association released a few weeks ago revealed that second charge mortgage new business volumes had grown by 48% in April 2022.

The value of new business saw a dramatic rise reaching £127m, a 54% increase from April 2021.

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