Second charge mortgage volumes rise 9% in June – FLA
The volume of new second charge mortgage agreements rose 9% year-on-year to 3,828 in June, compared to a 1% decline in May.
Figures from the Finance & Leasing Association (FLA), the value of new business increased 16% annually to £205m, higher than the £175m value recorded in the previous month.
Over the three months to June, the value of business was up 18% to £571m, while the number of agreements increased 9% to 10,577.
The second charge mortgage market also improved in the 12 months to June, with a 27% increase in the value of business to £2.4bn and new agreements rising 18% to 44,725.
Fiona Hoyle, director of consumer finance and mortgages and inclusion at the FLA, said: “The second charge mortgage market returned to growth in June and delivered a strong second quarter overall, reflecting continued demand from homeowners looking to manage their finances effectively.
“The fact that loan consolidation accounted for at least 60% of new business highlights the important role second charge mortgages play in helping consumers refinance existing borrowing without disturbing their primary mortgage arrangements.”
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She added: “The Financial Conduct Authority’s recent review highlighted important areas for the second charge mortgage market. The FLA and its members are considering the findings carefully, with a clear focus on supporting good outcomes for customers.”
