Second charge mortgage lending sees surge in May

Second charge mortgage lending was up by both value and volume in May, with new figures showing growth on a quarterly and yearly basis.

The value of new business in the second charge mortgage lending sector rose by 26% in May compared to the same month last year, equating to £87m, according to figures from the Finance and Leasing Association.

Lending came to £259m in the three months to May.  This is a 25% increase on the same period in 2016.  While, lending in the 12 months to May was up by 3% compared to the previous year, reaching £917m.

In terms of volume, there were 20,016 new second charge agreements recorded in the 12 months to May, a 2% rise on the previous year.

Fiona Hoyle, head of consumer and mortgage finance at FLA said:

“Second charge mortgage new business has ebbed and flowed over the past year, which was to be expected following the significant changes brought about by the market’s transfer into MCOB in March 2016.

“While the market is still in the bedding-in process, in the first five months of 2017 new business was up 12% by value and 9% by volume, and May witnessed the third consecutive month of growth.

“Customers are borrowing for a wide range of reasons, including renovating or extending their property.”

 

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