Loans Warehouse’s Secured Loan Index has revealed that second charge lending has exceeded £50,000,000 for the first time since 2009.
The firm reported that the total lent across the industry was £50,371,440, which sees 2013 lending to date now 18% up on the whole of 2012 and total annual lending has broken £400,000,000 for the first time in four years.
October saw 80% of secured loan lenders report month on month increases in lending to the Index.
The number of second charge mortgage possessions in the third quarter of 2013 was down to 144, 11.7% lower than in the same quarter in 2012, according to the latest data from the Finance & Leasing Association (FLA).
Matt Tristram, co-founder and director of Loans Warehouse & Clearly Loans, said: “The last few weeks have seen some encouraging headlines; the drop in the rate of headline inflation to 2.2%; the Land Registry announced annual house price growth of 3.4%; and mortgage approvals are at their highest levels since February 2008. But, for me, the most telling figure is that second charge mortgage possessions fell 11.7% against the same quarter in 2012, according to the Finance & Leasing Association.
“I don’t think I’m speaking prematurely when I say the worst of the credit crunch is behind us in the second charge market, but continued growth must be sustainable. Critical to this positive future trend will be good advice from brokers matched by sensible lending decisions, with the backdrop of new FCA regulation.
“The latest figures from the FLA demonstrate that, in the past, the secured loan industry made responsible lending decisions to borrowers who can afford their loans, and we expect that positive picture to be reinforced by a new regulatory structure.”
