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Second charge lending down 4% in August

lending down graph

Second charge lending fell by 4% between July and August 2021, according to data collected by Loans Warehouse.

 

The total number of completions dropped to 2,344 last month.

The total lent was £95.5m in August, representing a £5.6m decrease on July 2021.

Average completion times were at 17.10 days, 0.5 days faster than the month before.

The majority of products were provided under 85% loan-to-value (LTV) at 75.2%.

The most popular reason for taking out a loan was consolidation at 47.54%.

This was followed by consolidation and home improvements at 29.44%.

Matt Tristram, managing director or Loans Warehouse, said: “The figures reported directly to Loans Warehouse from second charge lenders confirm lending totalled £95.6m in August 2021.

“Whilst these figures show a slight dip on July’s £101.2m, they demonstrate consistency as lending has a three month average over £100m for the first time since the pandemic began.

“As expected, second charge lending is largely up on figures reported in 2020, with August’s year on year figure up 122%.

“A more pertinent comparison would be 2019’s figures reported by the FLA, for which August stood at £105m.

“The most significantly reported change was seen in higher LTV lending which fell by just short of 10% from the figures published in June 2021.

“Year to date second charge lending has now surpassed the half billion figure with £595m in second charges completed and new lending figures continue to improve month on month.”

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