Second charge lending climbed 14% in June to £144.5m, compared to the previous month, with the “market on the rise again”, according to a Loans Warehouse report.
The June data was the second month in a row that second charge loans lifted, following a rise to £126.4m in May, despite Shawbrook Bank exiting this area of lending.
The lender’s survey adds that the number of June completions was the highest in a single month this year, lifting to 2,954, a 9% rise on May.
Loans Warehouse managing director Matt Tristram says: “Lending figures had consistently dropped since the turn of the year, much of which has been credited to the disastrous mini-Budget, but the resilient second charge market is on the rise again with a second consecutive month of significant growth.”
He adds “it is widely known” that around three of new lenders are set to enter the market later this year, including Admiral Money and Scroll Finance.
Tristram says that these 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”.
Total second charge lending this year stands “just short” of £718m, the report adds.
Loans Warehouse draws its data from a range of lenders including Pepper Money, Oplo, United Trust Bank, Together, Norton Home Loans, Equifinance, Evolution Money and Selina Finance.
