Second Charge Lending
Second charge mortgage market grows again in line with consumer confidence
The second charge mortgage market continued to grow in value in March as the Finance and Leasing Association (FLA) reported a continued strengthening of consumer confidence.
There was £86m worth of second charge mortgages issued in March, up 16% in value on the same month last year.
Quarterly and yearly figures were also on the up, with a growth of 29% and 33% respectively recorded, bringing the value of the second charge market in the 12 months to March 2016 to £898m.
The increase was preceded by growth of 40% in the year to February.
Geraldine Kilkelly, head of research and chief economist at the FLA, said these figures, along with a reported upturn in credit and personal loans and car finance, showed a solid performance by the consumer finance market in March and in the first quarter of 2016.
“They reflect the continued strength of consumer confidence despite uncertainty about the near-term outlook for the economy,” she said.
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The news follows FLA figures which found that second charge mortgage repossessions were down more than a half in the first quarter of the year.