You are here: Home - News -

Second charge summer lull dampens strong year

  • 06/10/2017
  • 0
Second charge summer lull dampens strong year
The second charge lending market maintained its summer lull in August as transaction numbers slipped slightly compared to July, but value increased marginally.

However, on longer term measures the market continued much stronger growth.

Data from the Finance and Leasing Association (FLA) showed 1,905 second charge transactions were completed in August totalling £91m – compared to 1,977 new second charge agreements totalling £90m in July.

The August transaction totals were 11% up on the same month last year, while the total in the last three months was 18% up on the June to August 2016 and the year-to-date was 4% higher.

Values of business completed also grew noticeably on August 2016 (up 25%), the 2016 summer (up 27%) and on the year-to-date (up 10%).

FLA head of consumer and mortgage finance Fiona Hoyle said: “The second charge mortgage market reported another strong month in August, with new business continuing to grow from a low base.

“A second charge mortgage provides a useful alternative where homeowners want to raise additional funds but do not want to change their existing first charge mortgage.”


Consumer finance growth

Overall consumer finance new business in August grew by 4% compared with the same month last year.

Credit card and personal loan new business together grew by 4% compared with August 2016, while retail store and online credit new business increased by 7%.

Both these sectors were up 7% on a year-to-date basis compared with 2016.

The Bank of England has raised concerns about the increasing level of consumer debt and how it may impact a potential economic slow down.

There are 0 Comment(s)

You may also be interested in


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.


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:
Brits unaware of benefits of remortgaging

Only one in three Brits associate remortgaging with securing a better rate on their mortgage.