The second charge loan market has experienced a 2.9% increase at the beginning of 2023, according to the latest Secured Loan Index from Loans Warehouse.

Figures reported directly to Loans Warehouse from second charge lenders indicated that second charge lending totalled £104.5m in January, a £3m increase on December’s total.

January’s total was comprised of 2,672 completions, which represented a 24% rise on December. The index also showed the average completion time from submission to completion for each loan was 14.42 days in January, a level 4.48 days faster than December.

Despite this, January’s figure represented a 6.9% decrease in year-on-year lending, although Loans Warehouse managing director, Matt Tristram, suggested the latest second charge lending data still indicates a “positive start” to the year.

“January’s results are being described as a positive start to 2023 with rate reductions expected by many lenders in the weeks ahead for the first time since the October 2022 mini-Budget fiasco,” Tristram said.

“Higher LTV lending has dropped by 0.8%, likely due to a slight reduction in products since October, a number that is expected to improve in the coming weeks.

“The biggest change reported this month is a reduction in completion times. Service levels have really benefitted with a four-day drop in the average completion time in January compared to recent months. A huge amount of credit needs to be given to the industry’s lenders.”

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

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