Latest figures released by the Finance & Leasing Association (FLA) show that second charge mortgage new business grew 8% by value and 15% by volume in March, compared with the same month in 2016.

Fiona Hoyle, Head of Consumer and Mortgage Finance at the FLA, said: “The second charge mortgage market has faced significant change since transferring into the FCA’s mortgage regime in March 2016. The strong performance in March 2017 – the first month that new business volumes have grown since August 2016 – could be the early signs of a return to form for this important market.

“Second charge mortgages are a very useful product, with consumers taking them out  for a variety of reasons – including home improvements, or paying the deposit or removal costs for a son or daughter moving into their first home.”

Table 1: New second charge mortgage lending

Mar 2017

% change on prev. year

3 months to Mar2017

% change on prev. year

12 months to Mar2017

% change on prev. year

Value of new business (£m)

93

+8

238

-1

871

-3

Number of new agreements (No.)

2,017

+15

4,999

-3

19,185

-9