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 |