New business volumes in the second charge mortgage market shrank by 15 per cent in October to £71m, according to new figures from the Finance & Leasing Association.
Second charges fell 22 per cent by volume in the same period.
FLA head of research and chief economist Geraldine Kilkelly says: “October was a quiet month for the second charge mortgage market as it continues to adapt to life under the Financial Conduct Authority’s mortgage regime. In the ten months to October 2016, this market reported new business up 5 per cent by value and down 6 per cent by volume.
“The FLA’s latest commissioned research of consumer lending forecasts by Oxford Economics suggests that new consumer credit in the UK will continue to grow in 2017 by around 1 per cent.
“This compares to a growth forecast of almost 6 per cent in 2016 as a whole.”