Property News > Second charge lending down significantly year-on-year

Second charge lending down significantly year-on-year

January 2021 saw second charge mortgage lending reach £60.8m - down from the £104m recorded in the same month a year earlier, according to new research by Loans Warehouse. 

In early 2020, the UK housing market was performing well following the signing of the deal to leave the EU and the political certainty provided by the outcome of the December 2019 General Election.

However, in more recent times, the market continues to be hampered by lockdowns, and in December 2020, 5.63% of loans written were above 85% LTV, rising to 9.48% in January 2021. 

Loans Warehouse partly attributes this increase to the reintroduction of Equfinance’s ‘Plus Range’ of Second Charges in January, which offers loans of up to 95% LTV for borrowers with a good credit profile.

In January, Oplo increased its maximum loan to £100,000 and stopped its headline rate to 5%. 

Additionally, Together Money, Shawbrook Bank and Oplo have all increased their use of Hometrack desktop valuations. Together will now accept an automated valuation model (AVM) for loans up to £250,000, while Oplo will do the same for loans up to £100,000. 

Shawbrook has increased the range of properties where a Hometrack can replace a physical valuation by increasing the maximum property value to £2m in London & South East.

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