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Second charge lending rises nearly 60 per cent annually to £161m

Christina Hoghton
Written By:
Christina Hoghton
Posted:
Updated:
27/02/2024

A second charge mortgage is secured against your property in addition to your mortgage

Second charge lending came to £161.4m in July, which is an increase of nearly 60 per cent compared to last year.

According to the Secured Loans Index from Loans Warehouse, this represents a new post-credit crunch lending record, up by nearly four per cent compared to the record set in March.

It is also around 13 per cent up on the lending figures from June.

The report said annual growth was surpassing all records since the financial crisis and was on track to hit £1.7bn in 2022.

It continued that there had been a drop in using second charge for pure home improvements, but there had been a rise in borrowers using it for a combination of home improvements and debt consolidation.

Consolidation and home improvement accounted for around 41 per cent of second charge loans, consolidation came to nearly 38 per cent and home improvements was pegged at 14 per cent.

The remaining was split roughly equally between asset and other loans.

Completions in the period came to 3,337, an 11 per cent rise on June.

The average completion time in July was 18.97 days, which is 1.72 days slower than June.

The average term was 14.87 years and the majority of loans, 83 per cent, was below 85 per cent loan to value.