Seconds market overcomes regulatory challenges to post strong figures

For the month of August alone, second charge mortgage lending was up by 6% on August last year, as the market bounced back from the introduction of regulatory changes in March of this year.

Geraldine Kilkelly, head of research and chief economist at the FLA, said: “Second charge mortgage new business volumes grew for the first time since February, following the market’s transfer to the FCA’s mortgage regime in March.”

Alan Cleary (pictured), managing director at Precise Mortgages said he was not surprised there had been a blip in the figures, but was delighted the market had overcome the regulatory challenge quickly and effectively, maintaining access to what he said was an important product for consumers.

He said: “We had anticipated that the second charge market would be down post-MCD implementation as lenders, brokers and consumers got used to new affordability rules. It is encouraging to see the market adapting to the new rules as second charge lending is a viable option for those consumers looking to capital raise. Hopefully this trend will continue.”