Second charge lending increases by 76% in 2021
Second charge lending totalled £118.4 million in December 2021, up 76% year-on-year, according to research from Loans Warehouse in partnership with Insights, Barcadia Media's independent market research portal.
"The figure represents a 76% increase on December 2020 and the continuation of a boom in second charge lending that hasn’t been seen since before the Credit Crunch, let alone the pandemic."
December's figures take the total lending for 2021 to £1.180 billion from over 27,000 loans completed in the last 12 months.
Whilst the number of completed loans reduced to 2,500 in December, the average loan size exceeded November’s record breaking £45,399, rising to £47,394.
Matt Tristram, managing director of Loans Warehouse, commented: "The figure represents a 76% increase on December 2020 and the continuation of a boom in second charge lending that hasn’t been seen since before the Credit Crunch, let alone the pandemic. In fact, we can confirm that Q4 2021 is the highest recorded lending since Q4 2008.
"In a rare event for the festive period, which further demonstrates how quickly second charge lending is growing, December even saw one lender report record completion figures.
"In other news, we start 2022 with the industry's biggest lender, Optimum Credit, rebranding to Pepper Money from 24th January, after purchase in October 2018."
To see the full report, visit https://www.project-insights.co.uk/securedloanindex/december-2021.
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