The value of new second charge mortgage business grew 11 per cent in September on an annual basis, according to latest figures from the Finance and Leasing Association.
New business totalled £89m, consisting of 1,958 new agreements, a number that also saw 11 per cent yearly growth.
In the three months to September this year, new business totalled £279m, an increase of 5 per cent on an annual basis. There were 6,220 new agreements during the quarter.
FLA head of consumer and mortgage finance Fiona Hoyle says: “In September, the second charge mortgage market reported its strongest rate of new business volumes growth since January.
“New business volumes have grown by 4 per cent so far in 2018, in line with expectations of single-digit growth in 2018 overall.”
A further release from FLA shows that the number of second charge mortgage repossessions in the third quarter of the year stood at 36 – 5.9 per cent higher on an annual basis. As a percentage of average outstanding agreements, second charge mortgages take up 0.09 per cent.
In 2012, 6,282 properties were taken into possession, a number that has subsequently decreased. In 2017, 136 properties were taken. So far in 2018, this figure stands at 119.
Hoyle comments: “The latest figures show that the number of second charge mortgage repossessions remained low in the third quarter, and market expectations are for this to continue in the final quarter of 2018.
“If a customer is concerned about meeting payments they should speak to their lender as soon as possible to find a solution.”