Heralds Second Charge Market Surge

Dec 22, 2021

Bumper Q3 and Q4 performance puts industry back on track

A FOUTH-QUARTER surge in the second charge mortgage market is set to tip lending back to pre-pandemic levels, according to national broker

Following official figures published today, the company, which has seen a dramatic increase in business over the Autumn, has calculated that lending levels will surpass growth seen in the years leading up to the pandemic.

The Finance and Leasing Association figures showed October’s second charge lending had soared to £109m during the month, with average loan sizes at more than £42,800.

Paul McGerrigan, CEO of said: “The market returned to strength in March this year, with growth really taking off over the late spring and summer – July lending across the industry* topped the £100m mark for the first time since February last year.

“Comparing the FLA figures out today with our own October and November performance, we calculate that the UK’s annual secured lending will comfortably exceed 2018’s total of almost £1.07bn – though this year’s final numbers may come in slightly behind the peak (post 2008 crash) of £1.3bn achieved in 2019.”

McGerrigan explained that from customer feedback and analysis of industry data – the secured lending market had come under high demand from several sides.

He added: “Record demand for property across the country, fuelled by people’s race for more space and the huge added benefit of the stamp duty holiday, has driven housing prices up much faster than affordability, and with requirement outstripping supply considerably, many homeowners have resorted to developing their existing property – anything from the addition of home offices to major extensions. This, as well as a growing appetite for consumers to assess their current debt position, caused by the pandemic, has fully re-ignited the market.

“Looking to the future – second charge lending typically reduces over December as families concentrate on Christmas, with a reawakening in January. Judging by this year’s growth in lending and house prices, we believe that – if the economy remains stable and unemployment under control – next year will experience growth beyond 2019’s figures.” is an online mortgage and loan brokerage which uses a highly advanced artificial intelligence platform combined with experienced human advisers and brokers to ensure customers access the best products through a smooth, efficient process. The company recently launched its Fair Fees campaign to encourage second charge mortgage brokers to cap their fees at 6 per cent or below in a bid for fairness and transparency for customers who can often find as much as 12.5 per cent added to the cost of their borrowing.

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Market-wide industry data taken from Finance and Leasing Authority (FLA) figures from 2017 to 2021.

Total Lending:
2021 – £874m to the end of October (latest published figures)
2020 – £728m
2019 – £1,256bn
2018 – £1,067bn
2017 – £997m

Average Loan Size:
2021 – £42,744 to the end of October (latest published figures)
2020 – £42,550
2019 – £44,850
2018 – £45,356
2017 – Data unavailable

ABOUT LOAN.CO.UK is a national, online credit broking business.
Established in 2014, the company has been working with the most advanced technology to build intelligent systems which will change the lending market, using a highly advance artificial intelligence platform combined with experienced human brokers to streamline the application process and improve the customer experience considerably. The business stands for transparency, fairness and excellent customer service. Limited is authorised and regulated by the Financial Conduct Authority.

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