The Secured Loan Index from Loans Warehouse has reported an 8.79% decrease in second charge lending in February 2023, bringing the total down to £95.3m.
The figures, provided directly by second charge lenders, indicate a 45.24% year-on-year decline compared to February 2022.
Notably, this marks the first time lending has dipped below £100m since August 2021.
According to Matt Tristram, managing director of Loans Warehouse, the company also observed a significant 3.59% drop in loans written above 85% loan-to-value (LTV) compared to January 2023.
Despite the downturn in lending volume, service improvements have been noted, with the average completion time from pack received to funding now reduced to 14.9 days.
To address the decrease in volume, lenders within the sector, including Spring, West One, Selina Finance, and UTB, have implemented rate reductions over the past month.
Industry predictions for March suggest a significant increase in lending as funding becomes more secure and accessible.
