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Second charge business down in value but up in volume: FLA

The value of new second charge mortgage business fell 2 per cent by value in August 2018 compared to the same month last year, according to figures from the Finance and Leasing Association.

However, the number of new agreements carried out in the month was up 6 per cent.

The value of new business carried out in August 2018 was £92m, made up of 2,100 new arrangements.

For the three month quarter to August this year, the value of new second charge business fell 1 per cent to £282m, while the number of new arrangements stood at 6,247, an increase of 3 per cent.

In figures for the year to August 2018, the value of new business rose to £1,022m, up 2 per cent and made up of 22,356 agreements.

FLA head of research and chief economist Geraldine Kilkelly says: “The second charge mortgage market has reported new business growth in six out of eight months so far in 2018.  With the number of new agreements in this market up by 3 per cent in the first eight months of 2018, we continue to expect single-digit growth in 2018 as a whole.”

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