Second charge lending dropped to £106m in April 2023, following a strong performance in March, according to figures reported directly to Loans Warehouse by second charge lenders.
The decrease, representing a substantial 17.7% drop, is largely attributed to the shorter working month of April, with only 18 working days compared to March’s 23.
Lending figures align with the number of completed loans for the month, which fell from 2,809 in March to 2,308 in April. Despite the decline, total lending for the year still stands just shy of £450m.
In a promising sign for the industry, completion times have continued to improve, with the average submission to completion time now standing at just 12 days.
In recent weeks, lenders including Selina Finance and Equifinance have announced significant rate reductions, further boosting optimism in the sector. They have also reintroduced longer fixed-term products, indicating confidence in the market’s stability.
Given April’s shorter working month, May is anticipated to register a significant rise in second charge lending.
