Second charge volumes down after 6 months of growth

The volume of second charge mortgage new business fell by 2 per cent in September this year, compared to the same month last year, new figures from the Finance and Leasing Association show.

Despite the drop in volume, the value of second charge new business was unchanged between September 16 and September this year at £77m.

Figures from the FLA also show that the annual rate of second charge repossessions as a percentage of average outstanding agreements at the end of Q3 2017 was 0.06 per cent, down from 0.07 per cent at the same time in 2016.

FLA head of consumer and mortgage finance Fiona Hoyle: “The fall in new business volumes in September comes amid subdued consumer confidence which has affected the housing market as a whole. It follows six consecutive months of growth in second charge mortgage new business volumes which grew by 11 per cent in the first nine months of 2017 to 16,043.

“Lenders are continuing to embed the new regulatory regime which puts first and second charge mortgage regulation on the same footing.”

Hoyle says the fall in second charge mortgage repossessions in Q3 “further demonstrates lenders’ commitment to helping customers in financial difficulty.”

“The number of repossessions in 2017 as a whole is expected to be at a similar level, or slightly lower, than in 2016,” she says.

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