Equifinance second charge volumes up 65%

The lender added that the latest industry volume analysis shows current market conditions are providing the perfect environment for second charge mortgages.

Second charge moved from the consumer credit regime to the mortgage regime in March this year with the implementation of the MCD.

Tony Marshall (pictured), managing director of Equifinance, said: “High property values and low mortgage rates have created perfect conditions for homeowners to make use of their primary asset to resolve other aspects of their finances which may have been brushed under the carpet for a few years.

“Favourable market conditions across a number of measures, means that second charges are clearly seen as the flexible choice for many, and we’re seeing higher business volumes as a result.”

Equifinance pointed to Finance and Leasing Association figures showing higher levels of second charges. In the 12 months to August second charge lending was up 17% on the previous year at £889m.

The lender said part of this is due to the advantages of second charges is being better explained, alongside re-mortgage considerations, and more homeowners are opting for a secured loan to sit as an extension to their primary mortgage debt, without worrying about early repayment charges.