Second loan charge on track to hit £ 1bn this year – Loans Warehouse


Second charge loans are on track to hit £ 1 billion by the end of the year, with loans in October reaching an all-time high, according to Loans Warehouse chief executive Matt Tristram.

According to Loans Warehouse chief executive Matt Tristram, the second load market last reached this figure in 2019. He said the £ 1bn target was a “benchmark of success for lending from second charge “.

Its Secured Loans Index report pointed out that in October the volume of second-charge loans stood at around £ 123.6million, an increase of £ 13.4million over the previous year. previous month, and the highest recorded under FCA regulations. The previous peak was in 2019 at £ 118million.

These figures were reinforced by the arrival of Selina Finance on the market and the removal of restrictions linked to the pandemic.

Earlier this week, Selina Finance launched a second line of 85% loan-to-value (LTV) charges.

Completions in October were also up 10% from September to 2,839, which is a record.

Consolidation loans accounted for about 46 percent of loans offered during this period, followed by consolidation and home improvements at about 30 percent and home improvements at about 19 percent.

The average turnaround time for second load loans in October was 17 days, 1.7 days more than in September. The average term of a second charge loan was 18.8 years.

About three-quarters of loans offered in October were less than 85% LTV, which the report said was because first-charge loans at higher LTVs had become more limited during the pandemic. The borrowers’ equity was therefore limited and the second charge became an alternative method of raising capital.

The proportion of second charge loans below 85% LTV was higher during the pandemic, while higher LTV first charge loans were more limited, according to Tristram.

The report brings together second charge loan numbers from Optimum Credit, Oplo, United Trust Bank, Together Money, Masthaven, Norton Home Loans, Equifinance, Evolution Money, Spring Finance and Selina Finance.


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