According to the FLA second charge mortgage new business volumes fell in November by 6%, although growth in the value of second charge mortgage new business was flat at £77m. In the 12 months to November 2016 the second charge market lent £879m, up by 7% on the previous year.
Commenting on the figures, Harry Landy, sales director at Enterprise Finance, said: “After October’s fall it’s encouraging to see second charge lending rebound in November with a return to the steady post-Brexit recovery we’d seen previously. It’s encouraging to see lending equal September’s £77m post-Brexit high, and with the market 7% larger than at the same time last year. The market is resilient but there is no doubt that the political shocks of 2016 impacted the property sector.”
Looking to the future, Landy said there would be some bumpy times ahead as US president elect Donald Trump takes office and UK prime minister Theresa May triggers Article 50.
He added: “The second charge market’s foundations are strong, and the FLA’s latest research suggests that new consumer credit in the UK will grow in 2017 by around 1%. The resilience of the sector shown in 2016 leaves me optimistic for the coming months, and in our view, the market is in good stead to navigate what is set to be another unpredictable year.”