Second change lending in the third quarter of of 2012 reached £98.3m, a 25% increase of the previous quarter’s figure of £78.5m, according to latest research from master broker Loans Warehouse.
Gross lending in the third quarter of of 2012 was 17.6% higher than in the same period in 2011, when it stood at £81m and according to previous Finance & Leasing Association (FLA) figures, this is the most amount lent in any one quarter since Q4 2009.
Meanwhile, total lending in September was £31.4m, a 9.2% decrease on August’s figures where lending reached £34.6m but an 8.32% increase on September 2011.
“September is the third consecutive month that secured loan lending has surpassed £30m and, naturally, I am very pleased with the success we have seen in the secured loan sector in such a short time,” said Matt Tristram, joint managing director of Loans Warehouse.
“This year second charge lending is already 17% higher than it was in 2011 and it will be interesting to see if the market can continue to meet expectations and surge into the fourth quarter.
“Second charge lenders have really taken note of the borrowing restrictions put in place by the high street lenders and have stepped up to the mark to fill the gap. Recently we have seen a dramatic boost to the second charge sector’s profile and as a result, more borrowers are realising that they still have access to practical finance solutions and are turning to secured loans.
“The support the industry has had from its lenders is fundamental in its development. Continuing with the monthly pattern revealed in last month’s index, September saw Central Trust take its turn to enhance product criteria when the lender announced it would introduce new measures to simplify the process of packaging a loan whilst, in turn, speed up the application process.”
