Loans Warehouse: Second charge lending up 76% annually
Second charge lending has returned to pre-pandemic levels following a 76% record breaking year-on-year increase, according to Loans Warehouse.
On a monthly basis, lending has increased by 15%.
The volume lent in May was £90m, up £12.4m on April, and the number of completions was up 14% to 2,172.
Average completion times were at 13.80 days, 1 day slower than the month before.
The majority of products were provided under 85% loan-to-value (LTV) at 91.77%.
The most popular reason for taking out a loan was consolidation at 46.96%. This was followed by home improvements at 25.23%.
Matt Tristram, managing director or Loans Warehouse, said: We are now one year on from the worst point of the pandemic as far as secured charge lending is concerned.
“In May 2020, only £21m of lending was recorded by the FLA, a figure that was the lowest recorded since 2008.
“We can now exclusively reveal that second charge lending in May 2021 totalled £90m.
“This in itself is lower than the post -pandemic high – but that’s comparing a 23 day month to a 19 day month, and had May been a 23 day month, new lending would have passed £109m.
“These figures show that lending increased 15% month-on-month and also highlight an incredible 76% record breaking year-on-year increase.
“The number of completions rose by 264 from April’s figure, marking the third month since the onset of the pandemic where the number has been recorded above 2000.
“In the year to date we have now recorded £390m in second charges and monthly new lending figures continue to return to pre-pandemic levels.”