Second charge lending dips following mini-budget chaos

Second charge lending dropped to £150.2 million in October, according to research from Loans Warehouse in partnership with Insights, Barcadia Media's independent market research portal.

Despite the turmoil that has followed the government’s mini-budget, October’s figures show a 36% year-on-year growth and the equal fifth-best lending month of 2022.

Figures reported directly to Loans Warehouse from second charge lenders confirm that second charge lending has now hit the £1.5 billion mark for 2022.

October saw another dip in higher LTV lending (-1.42%), whilst the average term remained unchanged and completion time increased by 0.31 days.

Matt Tristram, co-founder and director of Loans Warehouse, commented: "As reported in last month's Index, several lenders temporarily paused fixed-term products, something that has been exceptionally popular in recent years. We’re now starting to see the majority reprice and this option return; West One announced a two-year fixed rate product this week, and this follows Together who have brought back their fixed rate products.

"Selina Finance returned to lending on 31st October after a short pause, with a repriced range of HELOC second charge loans, with the promise of fixed rates and the eagerly awaiting new status one product later this month."

To see the full report, visit https://www.project-insights.co.uk/securedloanindex/october-2022.