Second charge market continues growth into 2020

Figures from the trade body showed 2,168 second charge deals worth a combined £104m had been completed in January.

The respective figures were 22 per cent and 11 per cent up on the same month last year.

It also takes the number of cases completed over the 12 months to January up to 28,239 worth a total of £1.27bn – both up 19 per cent over the 12 months to Jan 2019.

In December, the FLA revealed second charge mortgage volumes completed in the whole of 2019 hit £1.25bn, up 18 per cent on 2018.

Challenging months ahead

The trade body used the publication of the figures to call for government support to be widened to more lenders.

And it warned that the next few months were likely to be extremely challenging.

FLA director general Stephen Haddrill said: “It’s evident that FLA members are supporting individual customers and small businesses right across the economy, but they need the government and regulators to extend the new financial support schemes to the full range of lenders – banks and independents – to ensure that prompt funding can reach the widest possible numbers of customers at this critical time.”

Geraldine Kilkelly, head of research and chief economist at the FLA, added: “The market performance in January shows the wide range of support provided by FLA members to the real economy.

“Although the next few months will be extremely challenging for all industries as consumer demand and business activity shrink significantly, it is vital to maintain the availability of funding so that businesses can meet the upsurge in demand once the isolation period ends.”