Second charge mortgage volumes jump 20 per cent ‒ FLA

The latest data from the Finance and Leasing Association (FLA) showed around 6,849 new agreements were concluded in the quarter, while in the 12 months to June the 25,958 cases represented an increase of 17 per cent.

The value of new business has also risen sharply. In the quarter it was up by 19 per cent to £311m, while over the 12 months it was up by 14 per cent to £1.165bn.

Fiona Hoyle, head of consumer and mortgage finance at the FLA, noted that more than 13,300 agreements were reported in the first six months of the year, making it the strongest first half-year performance in more than a decade.

She added: “Consumers are finding second charge mortgages to be a useful product that supports the current trend of improving rather than moving.”

In contrast, credit cards and loan business were both down four per cent over the quarter, with 12,925 new agreements, while car finance also fell by one per cent, with a total of 9,503 agreements.

However, retail store and online credit agreements grew by three per cent in the three months to June, with a total of 2,090 agreements.