“We are seeing a shift in the use of a second charge, with the number of home improvement loans starting to decline slightly, potentially linked to rising costs of living and materials.”
Figures reported directly to Loans Warehouse by second-tier lenders show loans fell 5.03% from May, but rose 37.41% in June 2021.
Year-on-year growth continues to top all records since the financial crisis as Q2 sees highest quarter of loans since 2007, up 7.25% on an already record Q1 and £840.2m lent since the beginning of the year.
Elsewhere in second charge lending, Oplo has introduced the industry’s first discounted second charge green mortgage product, as it begins its migration to the Tandem Bank Group, while increasing its loan maximum to £100,000 at £250,000.
Spring Finance secured funding from NatWest and relaunched its line with an interest-only buy-to-let product.
Additionally, Selina Finance has revamped its residential lineup with enhancements for independent applicants as they ramp up lending leading into the third quarter.
Matt Tristram, Managing Director of Loans Warehouse, commented: “We are seeing a shift in the use of a second charge, with the number of home improvement loans starting to decline slightly, potentially linked to rising costs of living and materials.
“Lead times increased slightly in June, but May saw a sharp decrease from previous months, so that was not unexpected.”
To see the full report, visit https://www.project-insights.co.uk/securedloanindex/june-2022.