Second charge growth slows in first half of 2018 as June transactions fall

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  • 15/08/2018
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Second charge growth slows in first half of 2018 as June transactions fall
Growth in second charge new business slowed during the first six months of 2018, as the market stabilised just above the volume completed in the same period last year.

 

However, this was punctuated by significant falls in monthly activity during March and June – with the value of business and number of deals completed both down.

According to the latest data from the Finance and Leasing Association (FLA), 1,985 second charge transactions were completed in June worth £91m.

While these were the highest figures of the year so far they were down 6% and 3% on June 2017.

Overall £505m worth of new second charge business was completed in the first half of 2018, up 1.4% on the £498m between January and June in 2017.

March saw the most significant drop in the period – a fall of 10% in the value of new business completed with transactions down 13%.

Finance & Leasing Association (FLA) chief economist and head of research Geraldine Kilkelly said: “The second charge mortgage market reported new business volumes up in the first half of 2018 by 2%, compared with the same period in 2017.

“This was in line with stable new business volumes reported by the wider mortgage market over the same period.”

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