Lending in the second charge space dropped to £150.2m in October, according to the latest Secured Loan Index from Loans Warehouse.

Fgures reported directly to Loans Warehouse from second charge lenders confirm indicated that despite the economic turmoil that followed the government’s mini-Budget, October’s figures show a 36% year-on-year growth.

October was also the equal fifth-best lending month of 2022 and has taken the total of second charge lending in 2022 past the £1.5bn mark.

However, the month of October did reflect a £10.2m decrease on September’s total, while completions in the Second charge space decreased by 9% to total 2,744. October saw another dip in higher LTV lending (-1.42%), while the average term remained unchanged and completion time per loan increased by 0.31 days.

“As reported in last month’s index, several lenders temporarily paused fixed term products, something that has been exceptionally popular in recent years,” said Loans Warehouse managing director, Matt Tristram.

“We’re now starting to see the majority reprice and this option return; West One announced a two-year fixed rate product this week, and this follows Together who have brought back their fixed rate products.

“Selina Finance returned to lending on 31 October after a short pause, with a repriced range of HELOC second charge loans, with the promise of fixed rates and the eagerly awaiting new status one product later this month.”

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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