Second charge lending up 3% as service levels improve

Second charge lending increased by 2.92% at the start of 2023 to £104.5 million lent in January, according to research from Loans Warehouse in partnership with Insights, Barcadia Media's independent market research portal.

This represents a slight decrease in year-on-year lending of 6.91%, the figures reported directly to Loans Warehouse from second charge lenders confirm.

However, January’s results are being described as a positive start to 2023, with rate reductions expected by many lenders in the weeks ahead for the first time since the October 2022 mini-budget.

Matt Tristram, managing director at Loans Warehouse, commented: "Higher LTV lending has dropped by 0.8%, likely due to a slight reduction in products since October, a number that is expected to improve in the coming weeks.

"The biggest change reported this month is a reduction in completion times. Service levels have really benefitted with a four-day drop in the average completion time in January compared to recent months. A huge amount of credit needs to be given to the industry’s lenders."

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