The second charge mortgage market has experienced growth in borrowing levels despite a period of regulatory change, the latest data from the Finance and Leasing Association has found.
A total of 21,947 second charge new business loans were completed in the 12 months to December 2017, according to the FLA, an increase of 10 per cent on the total for the same period in 2016.
The loans for the year were valued at a total of £1.024bn, an increase of 14 per cent on the previous year.
For the three months to December 2017 the number of new second charge mortgages completed was up 7 per cent on the same quarter a year earlier; the value of the loans in that period was up 9 per cent.
There was a slight dip in the number of deals completed in the month of December, down 1 per cent on the same month in 2016.
FLA head of consumer and mortgage finance Fiona Hoyle says: “Second charge mortgage new business volumes have now returned to levels last seen in 2015, before regulation transferred to the FCA’s mortgage regime.
“The sector has shown resilience during a period of significant regulatory change, as it works to ensure that all the new regulatory requirements are in place.
“Consumers use second charge mortgages for a variety of purposes, particularly funding home improvements and property extensions.”