Second-charge approvals on a high

Second-charge mortgage approvals hit a four-year high in October, according to figures published last week by the Finance & Leasing Association.

A total of 1,391 new approvals were secured in the second charge mortgage market in October 2013, a 25 per cent increase from the same month last year.

The value of new business in the second charge market in October reached £44m, a jump of 42 per cent from October 2012.

The average total advanced to second charge borrowers also increased to £31,632 – an annual rise of 14 per cent from last year when the average advance stood just below £28,000.

The FLA has also stated that the sustained demand for credit requires a sensible approach to regulation from the FCA.

FLA head of consumer finance Fiona Hoyle says: “The figures show a continued demand for responsibly-provided credit and maintaining the supply of credit has got to be a priority for the FCA as it finalises its new regulatory regime.”