Second charge growth tails off

Ryan Bembridge

February 9, 2018

Second charge business volumes fell by 1% to 1,584 in December 2017 year-on-year, figures from the Finance & Leasing Association show.

In the longer-term business volumes have increased. In the three months to December they were up 7% from the year before, while in the year to December 2017 there were 10% more second charge cases.

Fiona Hoyle, head of consumer and mortgage finance at the Finance & Leasing Association (FLA), said: “Second charge mortgage new business volumes have now returned to levels last seen in 2015, before regulation transferred to the FCA’s mortgage regime.

“The sector has shown resilience during a period of significant regulatory change, as it works to ensure that all the new regulatory requirements are in place.

“Consumers use second charge mortgages for a variety of purposes, particularly funding home improvements and property extensions.”

Tim Wheeldon, chief operating officer at, Fluent Money, said: “What needs to be remembered is that much of that new business is now coming from sources which are either new to second charge borrowing or have only ever used the facility sparingly in the past.

“Intermediaries are recognising in greater and greater numbers that, under this regulatory regime, they can be confident that a second charge option can be an appropriate choice for their customers.

“As the message continues to spread, I expect more and more advisers will be actively researching a second charge option and the sector will continue to see steady growth.”

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