Second charge lending in December up 76% year on year
The figures reported directly to Loans Warehouse from second charge lenders confirm lending totalled £118.4 million in December 2021.
Whilst the number of completed loans reduced to 2,500, the average loan size exceeded November's record breaking £45,399, rising to £47,394.
The figure represents a 76% increase on December 2020 and the continuation of a boom in second charge lending that hasn't been seen since before the Credit Crunch, let alone the pandemic. In fact, we can confirm that Q4 2021 is the highest recorded lending since Q4 2008.
December's figures take the total lending for 2021 to £1.180 billion from over 27,000 loans completed in the last 12 months.
In a rare event for the festive period, which further demonstrates how quickly second charge lending is growing, December even saw one lender report record completion figures.
In other news, we start 2022 with the industries biggest lender, Optimum Credit, rebranding to Pepper Money from 24th January, after purchase in October 2018.
- Asset
- Consolidation
- Consolidation & Home Improvements
- Home Improvements
- Other
Completion
Time
One of the biggest impacts on mortgage lending during the pandemic has been on the level of equity available to borrowers. Second charge lending continues to offer an alternative method of raising capital for many, as such we will have highlighted the split of lending over 85% LTV.
- Below 85%
- Above 85%
The Secured Loan Index is a monthly infographic brought to you by Secured Loan Broker and Loans Warehouse, and takes information from the biggest second charge lenders in the UK including: Optimum Credit; Tandem; United Trust Bank; Together; Masthaven; Norton Home Loans; Equifinance; Evolution Money; Spring Finance; and Selina Finance, along with our own market knowledge to produce an accurate reflection of lending.
It is designed and produced to monitor activity in second charge lending in the UK.
To become a contributor and join our panel please contact Matt Tristram - mt@loanswarehouse.co.uk
