Growth continues in second charge mortgage lending

The Finance and Leasing Association’s latest figures see continued growth in second charge mortgage lending during May 2017.

Commenting on new business figures for the second charge mortgage market, Fiona Hoyle, Head of Consumer and Mortgage Finance at the Finance & Leasing Association (FLA), said “Second charge mortgage new business has ebbed and flowed over the past year, which was to be expected following the significant changes brought about by the market’s transfer into MCOB in March 2016. While the market is still in the bedding-in process, in the first five months of 2017 new business was up 12% by value and 9% by volume, and May witnessed the third consecutive month of growth.”

“Customers are borrowing for a wide range of reasons, including renovating or extending their property.”

Table 1: New second charge mortgage lending

	May 2017	% change on prev. year	3 months to May2017	% change on prev. year	12 months to May2017	% change on prev. year
Value of new business (£m)	87	+26	259	+25	917	+3
Number of new agreements (No.)	1,851	+29	5,449	+25	20,016	-2