Second charge lending grows 14% in June

Second charge lending climbed by 14% in June to £144.5m, compared to May’s £126m, according to research from Loans Warehouse in partnership with Insights, Barcadia Media's independent market research portal.

Lending figures had consistently dropped since the turn of the year, much of which has been credited to the disastrous mini-Budget, but the second charge market is on the rise again with a second consecutive month of significant growth.

June represents an additional £17.6m in lending compared with May 2023, despite Shawbrook Bank exiting the second charge market.

The figures, reported directly to Loans Warehouse from second charge lenders, confirm that the number of completions was the highest in 2023, finishing just shy of 3,000; 12% higher than in May.

Total lending stands just short of £718m for the year to date.

Matt Tristram, managing director of Loans Warehouse, commented: "Positive news has emerged of at least three new lenders set to enter the second charge arena in 2023. It’s widely known within the industry that Cardiff will be the base for two new lender launches towards the end of the year, one of which is on record, Admiral Money. In addition, it’s looking likely that Scroll Finance will beat them both with their launch expected in the next few months.

"These three lenders are expected to bring much-needed competition to the market and give options to borrowers on low-rate mortgages who need to raise additional borrowing."

To see the full report, visit https://www.project-insights.co.uk/securedloanindex/june-2023.