You are here: Home - News -

Second charge market grows sharply – FLA

by:
  • 16/08/2017
  • 0
Second charge market grows sharply – FLA
Second charge lending grew for the fourth consecutive month in June and by 36% over the second quarter of 2017.

Data from the Finance and Leasing Association (FLA) showed £259m worth of second charge loans taken out in the three months to June – up 36% on the same period last year.

There was also a substantial increase – up 28% to 5,402 – in the number of second charge loans completed in Q2 compared to Q2 2016.

FLA head of consumer and mortgage finance Fiona Hoyle (pictured) said: “In June, the second charge mortgage market reported its fourth consecutive month of growth, with new business up 33% by value and 22% by volume.

“The number of new second charge mortgages in the first half of 2017 was 10,401, 11% higher than in the same period in 2016.

“Second charge mortgages can be particularly useful when a customer wants to raise additional funds but does not want to change their existing first mortgage – especially where this involves additional costs. They are regularly used by customers to fund home improvements,” she added.

Overall, consumer finance borrowing grew 7% in June compared to the same month last year, with 4% growth in the second quarter of 2017.

Credit card and personal loan new business together grew by 10%, while retail store and online credit new business increased by 3%.

There are 0 Comment(s)

You may also be interested in

Bridging

Keep up-to-date with all the breaking bridging and short-term lending news and analysis, from regulatory changes to product innovation and inside market knowledge. Take a look at our broker and lender case studies showing short-term finance in practice.

Commercial

Find all the news, opinion and analysis for property finance brokers specialising in commercial and semi-commercial mortgages, alternative and development finance for commercial investments in residential projects.

Second charge

Stay up-to-date with the latest news, analysis and opinion on the secured loan market as it evolves into a mainstream finance option following European regulation on 21 March 2016.

Complex buy-to-let

Whether it’s a complicated asset or a complex customer, you’ll find out all the breaking buy-to-let news in this section. From limited companies to portfolio landlords, student lets to a House in Multiple Occupation, we’ve got all bases covered with our up-to-the-minute news, analysis and opinion.

Mortgage Solutions

Find all the breaking news, analysis and industry comment on Specialist Lending Solutions' sister site, Mortgage Solutions
Read previous post:
/IMG/790/207790/jobs-sign.jpg
UK unemployment hits record low

The number of jobless people recorded in the UK fell 57,000 in the three months to June, its lowest point...

Close