Second charge market volumes up 31%
The number of new second charge agreements rose by 31% year-on-year to reach 2,392 in March, the Finance & Leasing Association (FLA) has found.
In March there was £108m worth of new second charge business, up 25% year-on-year.
In the three months to March the value of new second charge business was £292m, an increase of 19% from the previous year.
Fiona Hoyle, head of consumer and mortgage finance at the Finance & Leasing Association (FLA), said: “In March, the second charge mortgage market reported its highest level of monthly new business volumes since October 2008.
“It is a competitive and innovative market for consumers, with a growing number of broker partners.”
In the three months to March there were 6,500 new second charge agreements, up 25% year-on-year.
Jeff Davidson, head of intermediaries at Fluent for Advisers, said the main reasons for this growth is to simplicity and quick access of funds.
He added: “More advisers and their customers have been coming to us because they recognise that a second charge mortgage makes capital raising simple and clear cut, with funds in their account quickly and with no fuss.
“Without having to disturb a perfectly good first mortgage and with rates starting at under 3%, second charge loans make an attractive proposition for anyone who wants to raise money for almost any purpose and which can be repaid at any time without penalty in some cases or as little as one month’s interest.
“After all the long winded debates about the suitability of second charge or remortgaging, it is good to see that advisers are seeing just how versatile a second charge mortgage can be.”