Second charge lending volumes down 6% in November

According to the data, £77m of second charge loans were written in November, same as in the previous year.

Popularity of the product had already dipped over the months leading up to November with a total of £225m of seconds written from September to November, down 4% on the same period in 2015.

Over the course of 12 months, however, the value of new sales of the products was up 7%, to £879m.

Despite the stagnation of second charges, the consumer finance sector recorded a positive year.

About £7.7bn of consumer finance was written in November, according to the FLA – up 9% on the previous year – with credit cards and car finance being the best performers (up 10% and 11% respectively).

Head of research and chief economist Geraldine Kilkenny said: “November saw new business growth across most of the main consumer finance products, as consumer confidence remained relatively robust in the build up to Christmas. In the eleven months to November 2016, overall new business grew by 10% compared with the same period in 2015.”