Second-charge approvals at four-year high in October

Second-charge approvals hit a four-year high in October, according to figures published today 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 Financial Conduct Authority.

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

“The FLA has called for a sensible and proportionate approach – one which recognises the extremely short timeframe that firms have to implement wide-ranging changes. 

“With only four months to go before the new regime is introduced, and the final rulebook not due for publication until the end of February, sensible transitional arrangements are going to be essential.”