Second charge loans top £140m in April: Loan Warehouse

According to Loans Warehouse, second charge loans jumped to £140.4million in April from a year ago.

Last month’s year-over-year figures were up 80.9% in April 2021, the company said based on data reported to it directly by second-charge lenders.

The report adds that there was a 9.7% drop in overall lending volume, but points out that there were 19 working days in April compared to 23 in March. The number of loan completions, at 3,000 in April, was down 7% from the previous month.

However, the past month has seen an increase in the average daily loan amount, according to the study.

The top three loan types last month were consolidations, at 40.1%, consolidations and home improvements, 39.3%, and home improvements, 13.7%.

It took 22 days to complete the lending process last month, unchanged from March, with average loan terms at 21 years and 84.5% of loans secured below 85% LTV.

The study points out that reported figures for loan-to-value levels, average duration, purpose and execution times were virtually identical throughout the year.

So far in 2022 second dependent loans have topped half a billion and are on course to beat £2billion this year for the first time since 2007.

Pepper Money announced a second major milestone in April, according to the report, which saw the company’s current loan portfolio surpass £1bn, bringing a total of £1.8bn lent since the book began. .

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