Second charge mortgage market grows again in line with 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.

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.