Record growth in 2nd charges

June saw second charge lending total £143.3m, helping the sector post its strongest Q2 results since 2007.

It says that Q2 lending for this year is up 7.25% on an “already record-breaking Q1” and that lending year to date has reached £840.2m.

In total, £143.3m was lent through a second charge mortgage as summer began, and while this is a 5.03% drop on May’s figure, it is a 37.41% increase on June 2021.

The number of completions posted in June fell 2% on the month, coming to 3.014, and the average completion time equalled 17.25 days.

The lending market is seeing a shift in the use of second charge loans, “with the number of home improvement loans starting to fall slightly, potentially linked to the rising cost of living and materials.”

A recent report shows that in June, consolidation and home improvements were stated as the reason for 37.20% of second charge loans, home improvements for 15.57%, and consolidation for 41%.

This is a rapidly expanding area of lending and products are increasing to match the demand. Borrowing money these days is a complex issue and it is vitally important to get the right one that meets your needs in both the short and long term. It is always recommended to seek professional advice when taking out any form of loan.

Need some assistance?

If you think this type of loan could assist you in your future planning it is very important to ensure you get the correct deal to suit your needs. There are many different lenders offering numerous second charge loans so please do call our advisers who will be happy to help you achieve the correct loan for you.