Second charge lending down 6% in January, says FLA

New second charge lending business fell 6 per cent by value in January, according to data released today by the Finance & Leasing Association.

Second charge mortgage new business fell also fell 11 per cent by volume over the same period.

There was £69m of new second charge lending in January, according to the FLA.

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The three months to January saw £218m of second charge loans being extended, down four per cent on the same period last year.

However, the year to January 2017 saw £869m of second charge loans registered by the FLA, up one per cent on year-on-year.

Enterprise Finance sales director Harry Landy says: “The specialist lending sector as a whole is growing, and we are seeing an increasing number of investors exploring the flexibility specialist financing can offer.

“FCA regulation and the introduction of the MCD have positively influenced the market, improving choice and quality for consumers.

“Intermediaries are also becoming more aware of the benefits of second charge mortgages and specialist lending, advising their clients on the speed and flexibility these can offer. As such, we are confident that the market will continue to grow even further in the months ahead.”

Last December experts warned a lack of broker knowledge was still holding up second charge lending volumes and could play into a Financial Conduct Authority cull of unused regulatory permissions.