Second-load lending grew 82% in the first quarter
Second-charge lending volumes hit a new high after the credit crunch in the first quarter of the year, with £155.5m lent in March alone.
According to the latest statistics from Loans Warehouse, second-load loans increased by 82.62% year-on-year in the first quarter of 2022. Last month, Loans Warehouse reported an 83% increase in loans between February 2021 and February 2022.
3,237 loans were taken out in March, beating the previous monthly record of 3,036, set in November 2021.
“Figures reported directly to Loans Warehouse by sub-prime lenders confirm that loans totaled £155.5m in March 2022, a new post-credit crunch record and a continuation of the huge growth seen in the second load loans over the past six months,” said Matt Tristram, managing director of Loans Warehouse.
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“These record numbers represent a 12.36% increase month-on-month and a 12.83% increase from the previous post-credit crisis record.
“Loans in the first quarter of 2022 also rewrite the record books up 82.62% compared to the same period in 2021. In comparison, it took until June to reach the same level of loans last year .”
Data from Loans Warehouse revealed that the most popular type of loan was consolidation loans, which accounted for just over 39% of all second charge loans in March. Consolidation and home improvement lending accounted for 37.18% of lending, while home improvement lending accounted for 16.05% of all lending activity.
The average completion time was 22 days, one day faster than in February 2022.
The average tenure was 21.8 years.
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