Second charge lending surges 33% in June

The second charge mortgage market saw new business increase 33% by value and 22% by volume in June compared with the corresponding month last year, according to the latest data from the Finance & Leasing Association (FLA).

This is the fourth consecutive month of growth following six months of falls dating back to August last year.

The number of new second charge mortgages in the first six half of the year was 10,401, up 11% year-on-year.

“In the first half of 2017, consumer finance new business grew by 5% compared with the same period in 2016, in line with modest single-digit growth expectations for the year as a whole,” said Geraldine Kilkelly, head of Research and chief economist at the FLA.

The second charge market has performed strongly recently, despite the fact that consumers and investors have been hit by rising inflation, as well as ongoing political and economic uncertainty following the general election and current Brexit negotiations.

“This this does not seem to have deterred borrowers looking for alternative routes of financing,” said Harry Landy, managing director at Enterprise Finance.

He added: “With the market continuing to accelerate, it’s hugely important that awareness and availability of second charge loans improves among brokers to help them secure the most suitable financing for their clients. Doing so will help the sector to continue to thrive.”

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Written by: Houseladder