Loans Warehouse: Business as usual for second charge market
It is business as usual for the second charge market as a third national lockdown has been enforced, according to the latest Secured Loan Index by Loans Warehouse.
Loans Warehouse predicts that in Q1 2021, lending volumes will return to pre-pandemic levels as several lenders plan to release new product ranges in January and offer significant pricing decreases.
Q4 2020 saw a doubling in volume over the preceding quarter, with December 2020 lending volume being recorded at £66.8m.
Whilst this figure represents a month-on-month drop that is seasonal, but as a percentage it is a 2% difference from the same period pre-pandemic in 2019.
Average completion time across the industry dropped to at 11 days, the lowest seen since the return of the index.
This index comes following news that Together were to raise their maximum LTVs to 70% across its second charge mortgage products, the highest equity they have lent to since March 2020.
In addition, Knowledge Bank have reported an increase in advisers searching for second charge products with the most searched term being ‘maximum loan-to-value’.