Second cost lending decreased by 8.79 per cent in February to £95.3m, marking the primary time that volumes have dropped beneath £100m since August 2021.
New figures offered by second cost lenders to Loans Warehouse indicated a year-on-year lower in lending of 45.24 per cent.
Learn extra: How property platforms got here to dominate the P2P sector
The mortgage comparability website additionally noticed a giant dip in greater loan-to-value (LTV) lending in comparison with January 2023, with a dip of three.59 per cent seen in loans written above 85 per cent LTV.
Nonetheless, service continued to enhance, with the common completion time from pack obtained to funding right down to 14.9 days.
A second cost mortgage permits debtors to make use of fairness from a property as safety in opposition to one other mortgage. Loans Warehouse evaluation confirmed that greater than 93 per cent of those loans had been used for consolidation and residential enhancements in February.
Learn extra: Loans Warehouse workers to freeze belongings for Comedian Aid
Loans Warehouse stated that the lower in lending quantity is being addressed by lenders inside the sector, with Spring, West One, Selina Finance and UTB all making charge reductions within the final month.
It expects to see a big enhance in lending in March’s figures, as funding turns into safer.
The most recent figures are a stark distinction from January, when second cost lending was up 45 per cent year-on-year, ending 2022 at £1.71bn.