Second charge market steady over Q1 despite March slump

by:
  • 11/05/2018
  • 0
Second charge market steady over Q1 despite March slump
Second charge mortgage new business dropped significantly in March compared to the same month a year ago – however its first quarter performance was broadly on par with Q1 2017.

 

According to figures from the Finance and Leasing Association (FLA) new business was down 10% by value and 13% by volume in March, compared with the same month in 2017.

In Q1 2018 as a whole, new business increased 1% by volume compared with the same quarter in 2017 and was unchanged in value at £244m.

Over the longer term, the sector has maintained its strong gains.

The value of new business in the 12 months to March was up 15% at £1.023bn with transaction numbers up 11% to 22,007.

 

Record business

Fluent for Advisers COO Tim Wheeldon (pictured) said he did not believe the March figures were a major concern.

“One month’s figures are not representative of a trend and while the month-on-month comparison shows a drop, the first quarter shows that the sector is ahead of last year.

“Our own experience at Fluent is that over the same period, we are registering record months with increasing volumes from our intermediary business.”

 

Quiet month

FLA head of consumer and mortgage finance Fiona Hoyle added: “March was a quieter month for the consumer credit markets in general. These latest figures show a stable picture for new business volumes in the first quarter overall.”

March was a quieter month in general for consumer finance, which includes, credit cards, car finance and retail store cards alongside second charge lending, according to the FLA.

New business overall was at a similar level to that reported in March 2017, and grew 6% in Q1 2018 as a whole.

 

There are 0 Comment(s)

You may also be interested in

Bridging

Keep up-to-date with all the breaking bridging and short-term lending news and analysis, from regulatory changes to product innovation and inside market knowledge. Take a look at our broker and lender case studies showing short-term finance in practice.

Commercial

Find all the news, opinion and analysis for property finance brokers specialising in commercial and semi-commercial mortgages, alternative and development finance for commercial investments in residential projects.

Second charge

Stay up-to-date with the latest news, analysis and opinion on the secured loan market as it evolves into a mainstream finance option following European regulation on 21 March 2016.

Complex buy-to-let

Whether it’s a complicated asset or a complex customer, you’ll find out all the breaking buy-to-let news in this section. From limited companies to portfolio landlords, student lets to a House in Multiple Occupation, we’ve got all bases covered with our up-to-the-minute news, analysis and opinion.

Mortgage Solutions

Find all the breaking news, analysis and industry comment on Specialist Lending Solutions' sister site, Mortgage Solutions
Read previous post:
Barclays boss Jes Staley fined £642k over whistleblowing failures

The chief executive of Barclays Jes Staley has been slapped with a £642,430 fine by the Financial Conduct Authority (FCA)...

Close