Second charge lending in October topped £50m as lending increased by 22%, the latest Secured Loan Index has revealed.
October saw 80% of secured loan lenders report month-on-month increases in lending as total annual lending passed the £400,000,000 mark for the first time in four years.
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.”
Tristram also highlighted a number of improvements from lenders during October.
Manchester based Blemain Finance has revamped its range and in doing so introduced its first single digit loan rate since the credit crunch.
Norton Finance, backed by recent additional funding, have reduced their headline rates for the second month running also taking the lender to single digit loan rates.