Second charge lending up 40%

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The value of second charge mortgages issued in February rose 40 per cent year-on-year to £81m, according to the Finance and Leasing Association.

The FLA says £887m of second charges were written in the year to February, 36 per cent more than the year to February 2015.

FLA head of research and chief economist Geraldine Kilkelly says: “The latest figures reflect robust consumer confidence, particularly with regard to their own personal finances.

“In 2015, household real disposable incomes grew at their fastest rate since 2001 and should continue to be supported this year by low interest and inflation rates as well as stronger wage growth.”

Second charge mortgages have been regulated like first charged from 21 March, when the Mortgage Credit Directive took effect.