Second charge lending eased by 3.6% £160.4m in September compared to a month before, but was still the third-highest monthly lending figure of the year, according to Loans Warehouse. 

The specialist lender says these types of loans last month fell below August’s record-breaking £166.5m total, but is still a 45.6% jump on the same period a year ago despite uncertainty in the mortgage market. 

It adds that the projected annual second charge lending total lifted again and is now expected to top £1.8bn, another post-financial crisis record, according to figures reported directly to the firm’s Secured Loan Index from second charge lenders. 

The data comes as more than a thousand products were pulled over the last few weeks as lenders work out how to reprice loans as the cost of debt for the government and companies has risen on international money markets, following Chancellor Kwasi Kwarteng’s tax-cutting mini-Budget late last month.    

The index says: “The second charge industry has seen a widespread increase in headline rates from almost all lenders, with rates typically increasing by an average of 1.75%.  

“In addition, Together, West One and Selina have taken the step to temporarily withdraw fixed-rate products.” 

The report adds: “However, most second charge lenders – including Pepper Money, Oplo and Equifinance — have honoured existing applications where a European standardised information sheet has been produced. 

“Other than rate, there have been minimal criteria changes recorded and lending seems to be continuing at the same level, so far.” 

The index says last month saw a saw a 0.36% drop in loan-to-value lending over 85%, a 0.38% rise in average terms to 16.5 years, while the average completion time increased by 1.9 days to 20.6 days.