EXCLUSIVE: Second charge market sees rise in higher LTV lending

The figures show that second charge lending totalled £60.8 million in January 2021, compared to £66.8 million in December 2020 and £104 million in January 2020.

Despite the dip in lending month-on-month, the market has seen an increase in loans written above 85% LTV from 5.63% in December to 9.48%.

Loans Warehouse says the reintroduction of Equfinance's 'Plus Range' in January would have contributed to this increase, a product that offers loans up to 95% LTV for borrowers with a good credit profile.

Matt Tristram, managing director of Loans Warehouse, said: "Second charge lending totalled £60.8 million in January 2021, compared to the £104 million lent in January 2020. It's fair to say that is about the only comparison that can be drawn, as January 2020 saw the country buoyant after a favourable Brexit deal had been signed, hot on the heels of a record breaking General Election victory, whereas January 2021 was Lockdown V3 and schools closed across the country."

Loans Warehouse has also announced Together Money as a new contributor to its Secured Loan Index.

To see the full report, visit https://www.project-insights.co.uk/securedloanindex/january-2021.