Second charge market continues to grow

Second charge market continues to grow

The Finance & Leasing Association (FLA) has reported that there was £79m worth of second charge business conducted in April 2017.

This was a 13% increase on the same month last year.

There were 1,581 new agreements during the month.

Fiona Hoyle, head of consumer and mortgage finance at the FLA, said: “This is a strong performance compared with the same month last year, but it’s important to remember that some of the growth in new business in April will be attributable to the fact that second charge mortgage providers had a relatively quiet month in April 2016. They had just been transferred into the Financial Conduct Authority’s MCOB regime and were still bedding in their systems.

“Second charge mortgages are a useful way for consumers to fund home improvements or provide the deposit for a son or daughter’s first home.”

Harry Landy, managing director at Enterprise Finance, added: “Today’s figures suggest some green shoots are coming through in the property market, continuing March’s trend. The UK’s property market is inherently resilient and it continues to be an attractive medium and long term investment.

“As the market accelerates it’s hugely important that awareness and availability of second charge loans improves among brokers to help them secure suitable financing for their clients.”