Lending in the second charge space registered an increase of 14% in June to total £144.5m, according to the latest Secured Loan Index published by Loans Warehouse.

This was up from £126m in May, figures reported directly to Loans Warehouse from second charge lenders have indicated.

Lending figures had been consistently dropping since the turn of the year, much of which has been credited to the fallout from the Government’s mini-Budget in September last year.

However, Loans Warehouse described the second charge market as “resilient” and suggested it is on the rise again, following a second consecutive month of significant growth. June represented an additional £17.6m in lending compared with May 2023, despite Shawbrook Bank exiting the second charge market.

The number of completions in June was also the highest monthly total so far in 2023, finishing just shy of 3,000 – a figure 12% higher than in May. Total lending in the second charge space now stands just short of £718m for the year to date.

Loans Warehouse managing director, Matt Tristram, said: “Positive news has emerged of at least three new lenders set to enter the second charge arena in 2023. It’s widely known within the industry that Cardiff will be the base for two new lender launches towards the end of the year, one of which is on record, Admiral Money. In addition, it’s looking likely that Scroll Finance will beat them both with their launch expected in the next few months.

“These three lenders are expected to bring much needed competition to the market and give options to borrowers on low-rate mortgages who need to raise additional borrowing.”

The monthly Secured Loan Index published by Loans Warehouse uses information from several second charge lenders across the UK, including Pepper Money, Tandem, United Trust Bank, Together, Norton Home Loans, Equifinance, Evolution Money, and Selina Finance.

Share Story: