"Competition between leading lenders will be the key driver which will see the second charge market double from the figures recorded in August before the end of the year."
In February, prior to the Covid-19 pandemic, second charge lending stood at a total of £107m. However, this figure had declined 81% by May to just £21m.
Since then, the market has continued to recover with lending more than doubling by August to £43m.
This has led Loans Warehouse to make the bold prediction that these figures will double again by the end of 2020.
Matt Tristram, co-founder of Loans Warehouse, said: “Despite the pandemic we have traded throughout the year and it is our opinion the opportunity in second charge lending has never been better than it is today.
“I’m confident that August’s results be at least doubled again before the end of year. Despite a rocky few months for the second charge sector positivity has once again returned.
“Competition between leading lenders will be the key driver which will see the second charge market double from the figures recorded in August before the end of the year.
“I expect to see September’s figures show a rise in lending to around £50m with October and November breaking the £80m barrier with ease."
