Second charge mortgage market sees growth in April

The Second charge mortgage market saw further growth in April. Commenting on the April 2017 new business figures Fiona Hoyle, Head of Consumer and Mortgage Finance at the Finance & Leasing Association (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.”

Table 1: New second charge mortgage lending

	Apr 2017	% change on prev. year	3 months to Apr2017	% change on prev. year	12 months to Apr2017	% change on prev. year
Value of new business (£m)	79	+53	248	+13	899	+2
Number of new agreements (No.)	1,581	+36	5,151	+10	19,601	-5