Second charge mortgage lending shot up by 11 per cent by value in July according to the latest figures from the Finance & Leasing Association.
By value there were £31m worth of second charge mortgages over the month, up 11 per cent year-on-year. In the three months to July there were £84m in total up 8 per cent and in terms of the year total to July £306m had been secured, which was also up 8 per cent.
Overall there was a 10 per cent increase in credit provided by FLA members in July at £4.58bn – the store instalment credit market led the growth, up by 33% in July compared with July 2011. Car finance was up by 28% by value and credit cards and personal loans by 2% over the same period. Only in the store card market did spending fall, down 14 per cent on the previous year £116m.
FLA head of consumer finance Fiona Hoyle says the figures show the importance of high street credit, whether provided by large retail chains or smaller independent stores, in helping consumers access the goods and services they require.
She says: “After last week’s reshuffle, the Government has some important decisions to make about the proposed new regulatory regime for consumer credit to ensure that high street businesses can both grow and deliver consumer choice.”