Second charge lending volumes grew by 80.86 per cent year-on-year to reach £140.4m in April, new research has shown.
The figures, which were reported directly to Loans Warehouse from second charge lenders, showed that lending in 2022 has now passed half a billion and currently stands at £545,913.
It is expected to surpass £2bn in a 12-month period for the first time since 2007.
Month-on-month there was a 9.68 per cent fall in volume as April contains fewer working days (19) than March’s 23, but last month there was a rise in the daily average lending amount.
Some peer-to-peer lending platforms, such as SoMo and LandlordInvest, offer and specialise in second charge lending and CrowdProperty entered the second charge lending space when it launched its CP Capital product at the end of March.
Read more: Is P2P second charge lending on the rise?
“As the increase in second charge lending continues, lenders are working hard to maintain service levels and our own experience has seen that most have now increased capacity as the record lending levels only look to continue,” said Matt Tristram, co-founder and director of Loans Warehouse.
“Second charge loans are being more widely used. With record low rates and variety of products, they are clearly now at the forefront of more mortgage professionals’ minds than at any point in Loans Warehouse’s 16 years of trading.”