Lenders in the second charge space have reported that February saw a £27m climb in total lending to £138.4m, the latest Secured Loan Index from Loans Warehouse has revealed.

The latest figure follows the £111.4m that second charge lenders reported in January.

February’s total figure was made up of 2,976 completions, which was a 19% rise from January when completions were at 2,494, having followed a similar pattern from December when they reached 2,500.

In terms of the average time taken from submission to completion, February’s rise in activity resulted in an average of 23.0 days per loan – 4.4 days longer than in January.

Furthermore, the Loans Warehouse index reported that the average loan size jumped from £44.673.9 in January to £46,522 in February.

“February 2022 also marks year-on-year growth of over 100%, when lending figures stood at £60.8m in January and £69.6m in February 2021,” said Loans Warehouse managing director, Matt Tristram.

“The average loan term has increased significantly between January and 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.”

The monthly Secured Loan Index from Loans Warehouse takes information from the biggest second charge lenders in the UK including Optimum Credit, Oplo, United Trust Bank, Together Money, Masthaven, Norton Home Loans, Equifinance, Evolution Money, Spring Finance, and Selina Finance.

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