February saw £138.4m of second charge lending take place, reports Loans Warehouse, which it says is a new post-credit crunch record.

This also means that second charge lending grew from £111.4m in January and by 83% on an annual basis.

The number of loans taken out increased from 2,494 to 2,976 on a monthly basis, while the average loan size went up too – from £44,673 in January to £46,522 in February.

The average loan term increased “significantly” on a monthly basis, adds Loans Warehouse, from 15 years to 21.5 years.

The report says: “This could be a result of the increased cost of living and a sign that consumers are trying to bring payments down to their lowest level due to fears of what is coming next.”

Earlier this month, the Finance and Leasing Association said that second charge new business volume grew by 57% in the year to January 2022, with a value of £91m.