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Second charge lending surges 68 per cent in a year

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Written by: Lana Clements
04/07/2022
A second charge mortgage is a secured loan in addition to your mortgage that you make separate monthly payments on
Second charge lending surges 68 per cent in a year

Second charge lending has reached the second highest level since the financial crisis, according to data.

Growth has rocketed by 67.88 per cent year-on-year to total £150.9m in May, industry figures from Loans Warehouse showed.

Month-on-month lending jumped by 7.47 per cent. There were 3,078 completions during the month which was a three per cent uptick on April.

Lending in the year to date has reached £834m, well over double the £389m by the same point last year.

The largest driver for loans was consolidation and home improvements.

May also saw an improvement in lender completions times, down from 22 to 15 days.

Recent data from the Finance and Leasing Association has also painted a picture of a booming second charge market.

Rising house prices have helped more people use their homes for second charge.

Higher interest rates mean a full remortgage can also be a less attractive option now than second charge.

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