Second charge market dips in July

by:
  • 08/09/2017
  • 0
Second charge market dips in July
The second charge mortgage market slipped slightly in July compared to June.

However, it reported its fifth consecutive month of year-on-year growth as new business rose 23% by value and 21% by volume compared to July 2016.

Data from the Finance and Leasing Association showed there were 1,977 new second charge agreements totalling £90m in July, down from £94m on 1,970 transactions.

The continued growth trend saw almost £1bn lent in the 12 months to July, up 8% on the previous 12 months.

 

Summer lull

Enterprise Finance managing director Harry Landy said the figures were likely to be part of a summer lull.

“After four months of solid growth for the sector, it’s disappointing to see second charge lending dropped slightly in July,” he said.

“However, we should be careful not to assume this blip is a new downward trend.

“The market is robust, demonstrated by four previous consecutive months of growth, so we’re cautiously optimistic lending will pick up again,” he added.

Finance and Leasing Association head of consumer and mortgage finance Fiona Hoyle (pictured) said: “In the first seven months of 2017, the number of new second charge mortgages grew by 13% to reach 12,378.

“It is important to remember that this growth is from a relatively low base. Nonetheless, the latest figures show that more customers are taking out a second charge mortgage – for example to fund renovations or help family members with a deposit for their first home.”

 

Unsecured lending growth

Other methods of consumer finance also grew in the month.

Credit card and personal loan new business together grew by 16% compared with July 2016, while retail store and online credit new business increased by 11%.

Finance and Leasing Association chief economist and head of research Geraldine Kilkelly added: “In the first seven months of 2017, consumer finance new business provided by FLA members was up by 6% compared with the same period last year.

“This is broadly in line with expectations for UK new consumer credit growth in 2017 as a whole.”

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:
The word 'Tax' assembled upon a calculator
Accountants argue sellers paying Stamp Duty would boost housing market

Accountants have called for home sellers, rather than buyers, to pay the cost of Stamp Duty when selling a property.

Close