Second charge mortgage market grows to £30m in January

The value of new second charge mortgage business grew by 30 per cent in January to reach £30m compared with over the same period in 2011.

By volume, the second charge mortgage business grew by 14 per cent to 992 agreements compared with January 2011.

The latest results from the Finance & Leasing Association today mark January as the strongest month for the second charge mortgage market since October 2011.

Finance & Leasing Association director general Stephen Sklaroff says: “This market contributes £260bn to the UK economy annually. Millions of people rely on it for everything from the car in their driveway to the sofa they sit on each evening. Tens of thousands of high street stores, motor dealers, and the lenders which provide the credit, need a realistic timeframe in which to prepare for the new regulatory regime.

“The Government’s target of April 2014 seems very tight, given the huge amount of work still to be done.  A sensible transition period and a smooth process will be vital to maintain the current supply of credit to consumers and businesses.”