No More Post-Brexit low

On the up again:

The value of second charge lending has jumped by 23% in the last two months which is the biggest increase for many years.

Figures show, second charges in September was at a post-Brexit low and the October figure is the highest since November 2008. It also represents an overall annual increase of 21%.

The number of second charge loans was also up significantly, rising 26% from 21,500 in September to 27,547 in October and is the highest since January 2009. The average loan amount rose by a staggering 11.4% as homeowners look to utilise the equity within their homes. Second charge lending accounted for 17.8% of total gross lending in October, the highest percentage since April 2012.

The second charge market has enjoyed a revival since September’s post-Brexit low.

Homeowners are borrowing at levels that have not been seen for almost eight years, when the recession hit.

There are several key driving forces behind this revival. Some of this is seasonal. In the run-up to Christmas, families are looking to tighten the purse strings, reduce their monthly bills and prepare for the festivities. Families are seeking long-term security while we wait for the outcome of Brexit negotiations, some homeowners are locking in low rates and fixing their monthly repayments which could be a shrewd move.

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If you are looking to take out a secured loan, please do make contact and one of our advisers will be happy to assist.