Second charge lending jumps 83% year-on-year

The figures reported directly to Loans Warehouse from second charge lenders confirm lending totalled £111.4 million in January and set a new post credit crunch record of £138.4 million in February 2022.

The number of loans written was all but identical between December and January, at 2,500 & 2,494 respectively, and the average loan size jumped from £44.673 in January 2022 to £46,522 in February.

Matt Tristram, managing director of Loans Warehouse, commented: "February 2022 also marks year-on-year growth of over 100%, when lending figures stood at £60.8 million in January & £69.6 million in February 2021.

"The average loan term has increased significantly between January & February 2022 from 15 to 21.5 years. This could be a result of the increased cost of living and a sign consumers are trying to bring payments down to their lowest level due to fears of what is coming next?"

UTB reported record levels in 2021 of £1.5 billion lent across their various channels including second charges, with Harley Kagan, chief executive officer at UTB, choosing to praise his staff for dealing with the pandemic with "resilience, tenacity and a positive outlook".

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