Total second charge lending for 2022 finished at £1.171bn, an increase of 45 per cent compared to 2021.

However, despite a bumper 2022, it appears that the market is slowing. According to Loans Warehouse’s latest Secured Loans Index, second charge lending in December came to £101.5m, which was the fourth consecutive month of reductions, and a £34m drop on November.

Completions for the month came to 2,150, which is 26 per cent down on the prior month.

Most loans (around 40 per cent) were for consolidation and home improvements. This was followed by solely consolidation at around 28 per cent and then home improvements at 14 per cent.

On the loan to value side, the majority of loans (84 per cent) were below 85 per cent. Around 16 per cent were above 85 per cent LTV.

Average completion times in December were pegged at 18.9 days.

The average term for a second charge loan was 16.1 years.