Second charge lending has experienced a significant increase in March 2023, with lending figures rising to £135m, according to data reported directly to Loans Warehouse by second charge lenders.
This 20.85% increase compared to February’s numbers suggests renewed confidence among lenders following the October 2022 mini-Budget.
Despite being 6.49% lower year-on-year, the March 2023 figure demonstrates a robust market, as March 2022 was considered buoyant. Q1 figures are also down, 15.85% below the same period in Q1 2022.
High LTV lending saw a 2% increase, and service continued to improve month-on-month, with the average time from submission to completion dropping to just 13.6 days.
Matt Tristram (pictured), managing director of Loans Warehouse, highlighted the positive developments in the market, including rate reductions by several lenders.
Selina Finance decreased rates on their 2 and 5-year fixed rate products, while Spring Finance made further price reductions to their near-prime range.
In terms of volume lent, there was a £34.1m increase in lending compared to February 2023, totaling £129.4m.
Completions saw an 18% increase, with 2,809 completions in March 2023. The average completion time from submission to completion also improved by 0.57 days compared to February 2023, clocking in at 13.62 days. The average loan term was 16.50 years.
