Second charge loans in December amount to £118m – Loans Warehouse


Second charge loans in December amounted to £118.4m, an increase of 76% on the same period last year.

According to the latest Loans Warehouse Secured Loans Index, this continues a growth trend in the market with total second charge loans in 2021 pegged at £1.18bn from over 27,000 loans.

It was hinted in December that loans had topped the £1bn mark for the time since 2019 and should be seen as a ‘benchmark of success’ for the market, according to Loans Warehouse chief executive Matt Tristram .

The report adds that the fourth quarter of 2021 saw the highest lending for the quarter on record since 2008.

December lending was down £18.6m from the previous month, however the report says the figures show a ‘continuation of a second-charge lending boom’ not seen since before the credit crisis.

He added that one lender had reported record completion figures, which the report said was a “rare event for the holiday season.”

About 84 percent of loans were below 85 percent of loan to value (LTV). The report attributed this to the fact that the pandemic had an impact on the level of equity available to borrowers, so the second charge loan was an alternative method of raising capital.

Completions in December were 2,500, down 18% from November’s figures.

However, the average loan size rose to £47,934, up from November’s record high of £45,399.

The report adds that 40% of loans in December were for consolidation and home improvement, 37% for consolidation only and 17% for home improvement loans.

Average turnaround times from submission to completion were 23 days, 0.4 days less than in November.

The average duration was 16.4 years.

This report brings together information 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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