Second charge loan pegged at £ 95.6million in August

The second mortgage market continued to show a strong recovery, with lenders loaning £ 95.6million in August.

According to the Loans Warehouse Secured Loans Index, second charge loans are £ 5.6million lower from the previous month, but more than double the amount in August of last year.

However, the report says loans stood at a three-month average of over £ 100million for the first time since the start of the pandemic.

Deliveries in August were 2,344, 4% lower than the previous month.

Year-to-date second charge loans have reached £ 595million on second charge completed and Loans Warehouse said new loan figures continued to improve.

Most of the loans were consolidation loans, which accounted for 47.5% of completion. This is followed by consolidation and home improvements at 29.4 percent and home improvements at 18.2 percent.

The average completion time improved slightly to 17.1 days, half a day faster than in July.

About three-quarters of the loans were less than 85 percent of the loan-to-value (LTV), with the remaining quarter exceeding 85 percent of the LTV. The average duration was also almost 17 years.

The report brings together information from secondary lenders including Optimum Credit, Oplo, United Trust Bank, Together Money, Masthaven, Norton Home Loans, Equifinance, Evolution Money, Spring Finance and Clearly Loans.

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