Lending in the second charge space dropped for the fourth month running to total £135.5m in November, according to the latest Secured Loan Index from Loans Warehouse.

This total reflected a £14.7m decrease on the level of second charge lending recorded in October.

Despite this reduction in lending in recent months, however, Loans Warehouse said the industry is already recording the highest annual figures since 2007.

Figures reported directly by second charge lenders to Loans Warehouse have indicated that lending is up 36.8% year to date, with second charge lending now at £1.61bn for the whole of 2022.

According to the latest data, the number of loan completions in November saw a 6% monthly increase to reach 2,908 for the month. However, lending at higher LTVs dropped slightly, with just 13.7% of loans completed in November at 85% LTV or above.

Loans Warehouse managing director, Matt Tristram said: “The average term of a secured loan has increased by 12 months, potentially linked to lenders’ affordability being stretched more than ever before in recent times.”

He added: “Many lenders have significantly improved their completion time, likely a result of a dip in the record-breaking lending levels seen across the summer months.”

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

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