Second charge market hit by stalling consumer confidence

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  • 09/11/2017
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Second charge market hit by stalling consumer confidence
The second charge market continued its summer stagnation in September with lending largely unchanged from the same month last year, and down significantly on August.

In all 1,693 second charge transactions were completed in September totalling £77m – with transactions down 2% compared to September last year and the value unchanged.

However, the market fell substantially from August’s total of 1,905 transactions (down 11%) worth £91m (down 15%).

After a strong start to the year the second charge market has been slowly sliding month-on-month since June, with September’s data being the most significant fall.

It prompted a warning from the Finance and Leasing Association (FLA) that lower consumer confidence was hitting the market.

 

Subdued confidence

This was reflected in the 12 months to September data, which showed 20,951 transactions worth £979m, static at 4% and 10% up respectively compared to the 12 months to September 2016.

FLA head of consumer and mortgage finance Fiona Hoyle (pictured) said: “The fall in new business volumes in September comes amid subdued consumer confidence which has affected the housing market as a whole.

“It follows six consecutive months of growth in second charge mortgage new business volumes which grew by 11% in the first nine months of 2017 to 16,043.

“Lenders are continuing to embed the new regulatory regime which puts first and second charge mortgage regulation on the same footing,” she added.

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