Second charge lending totalled £160.4m in September 2022, figures reported directly to Loans Warehouse from second charge lenders confirm.
This is the third-highest monthly lending figure of 2022 but a 3.63% decrease on August’s record-breaking £166.5m. It is, however, an incredible 45.56% year-on-year increase.
The projected annual total has risen again and is now tracking to finish at £1.77bn in 2022 – another post-financial crisis record.
September saw a small drop in higher LTV lending (0.36%), a slight increase in average term (0.38%) whilst the average completion time increased to 1.94 days.
Like everyone in financial services, the last couple of weeks have been ‘interesting’. The second charge industry has seen a widespread increase in headline rates from almost all lenders, with rates typically increasing by an average of 1.75%. In addition, Together, West One and Selina have taken the step to temporarily withdraw fixed-rate products.
However, most second charge lenders – including Pepper Money, Oplo and Equifinance – have honoured existing applications where an ESIS has been produced.
Other than rate, there have been minimal criteria changes recorded and lending seems to be continuing at the same level (so far).
