Second charge loans rose in fourth quarter
New research shows the split between first and second legal charge bridging loans remained consistent in the first three quarters of 2019. However, in Q4 2019, second charge loans rose to their highest level of 23% (Q3 2019: 18.4%). The 2019 Bridging Trends reported that second charge loans accounted for an average of 20% of total market volume in 2019, up from 17% in both 2018 and 2017. The data also revealed a drop in average monthly interest rates for the third consecutive year in 2019 to 0.76%, lower than in 2018 (0.81%), 2017 (0.83%) and 2016 (0.85%). Average LTV levels also declined to an average of 53% from 55% in 2018.