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Secondary lending decreased by 8.79% in February compared to January, with a year-on-year decline of 45%.
Data provided to Loans Warehouse from lenders with a second installment shows that £95.3m was disbursed in February – the first time the monthly figure has fallen below £100m since August 2021.
Compared to January, there was also a monthly drop in lending with a higher cost of credit: 3.59% fewer loans issued above 85% LTV.
Completed jobs also fell to 2374 from 2672 in January, down 11%. The average loan term was 16.3 years, with the majority (88.7%) of loans having an LTV of less than 85%.
Service levels have improved and the average time from package receipt to funding has been reduced to 14.9 days.
Lenders in the sector are battling volume cuts, according to the Secured Loan Index, with Spring, West One, Selina Finance and UTB applying rate cuts last month.
Loans Warehouse managing director Matt Tristram says: “Forecasts for March show significant growth in lending as funding becomes more secure.”
The index receives data from a range of lenders, including Pepper Money, Oplo, United Trust Bank, Together, Norton Homes Loans, Equifinance, Evolution Money and Selina Finance.
Evolution Money reported last week that homeowners are increasingly using secured mortgages to consolidate more expensive debt.
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