Second charge lending jumped to £140.4 million in April compared to a year ago, according to Loans Warehouse.

Last month’s year-on-year figures lifted 80.9% on April 2021, says the firm based on data reported directly to it from second charge lenders.

The report adds there was a 9.7% dip in overall loan volumes, but points out there were 19 working days in April compared to 23 in March. The number of loan completions, at 3,000 in April, was a 7% fall from the month before.

However, last month saw a rise in the daily average lending amount, the study says.

The three largest types of loans last month were consolidations, at 40.1%, consolidations and home improvements, 39.3%, and home improvements, 13.7%.

It took 22 days to complete the loans process last month, unchanged from March, with average loan terms at 21 years and 84.5% of loans set below 85% LTV.

The study points out that figures reported on loan-to-value levels, average term, purpose and completion times have been practically identical throughout the year.

Second charge lending so far in 2022 has topped half a billion, and is on track to beat £2bn this year for the first time since 2007.

Pepper Money announced a significant second charge lending milestone in April, the report says, which saw the firm’s current lending book top £1bn, making a total of £1.8bn lent since the book was started.