Second charge figures flatten

by: Heather Greig-Smith
  • 11/11/2016
  • 0
Second charge figures flatten
Second charge lending has flattened in the last three months, according to the latest figures from the Finance and Leasing Association (FLA).

The FLA said new business in the second charge mortgage market was up 4% on last September, at £77m.

However, while the market has grown in value, volume is down 1% for the same period. In the three months to September, second charge lending hit the same level as 2015 at £223m.

This is despite a more positive 12 months to September, during which time the market has been 15% ahead of the previous year at £892m.

Credit card and personal loan new business together grew by 8% compared with September 2015, while growth in retail store and online credit new business was flat.

Commenting on the figures, Geraldine Kilkelly, head of research and chief economist at the FLA, said: “Consumer confidence has been relatively robust in recent months, which is reflected by the consumer finance market’s solid performance in the third quarter.

“New business growth of 10% in the first nine months of 2016 was slightly ahead of the FLA’s single-digit growth expectations for 2016 as a whole.”

Harry Landy, sales director of specialist master broker Enterprise Finance, said the second charge mortgage market has taken economic turbulence, including the post-Brexit uncertainty, in its stride and continued its gradual rebound post-MCD.

“Today’s FLA data shows there is continued strength in the second charge market with new business volumes remaining akin to August’s increased level,” he said.

“We’re encouraged by the market’s sustained resilience and growing confidence in second charge lending as a mainstream part of the mortgage world. While the full effects of the referendum result is yet to be seen, we are looking forward to growth in the months ahead and ending the year on a high.”



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