Second charge market hits six months of growth: FLA

The finance and leasing association has released data that shows the second charge market expanding on a yearly basis for the sixth month in a row.

In December 2018, there were 1,702 new agreements valued at a total of £80m, growth of 13 per cent and 6 per cent against December 2017, respectively.

This is some way off November’s data, however, when 2,319 new agreements valued at £99m provided a 21 per cent rise for both metrics.

In the 12 months leading to December 2018, 23,529 new agreements were recorded at £1.07bn in value.

This is a 7 per cent upward change in new agreements within that time frame, and a 4 per cent increase in the value of new business.

FLA head of consumer and mortgage finance Fiona Hoyle says: “December saw the market report its sixth consecutive month of growth, contributing to solid single-digit new business growth in 2018 as a whole.

“The second charge mortgage market is expected to see further single-digit new business growth in 2019 overall.”

Fluent Money chief operating officer Tim Wheeldon adds: “It is now very clear that six months of growth demonstrates steady progress by the second charge sector and while, over the past six months, other mortgage sectors have seen declining numbers, it is worth reminding advisers that second charge business is increasing, even in the teeth of the prevailing economic and political turbulence.”

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