Second charge sector grows for seven consecutive months
Annual second charge lending has increased for seven consecutive months, Enterprise Finance’s second charge report reveals.
A total of £979m was lent in the 12 months to September 2017, up from £892m the year before.
Lending has increased consecutively year-on-year from March to September.
Harry Landy, managing director of Enterprise Finance, said: “The sector has shown resilience amid ongoing political and economic uncertainty, at a time when confidence in the property sector as a whole seems to be gradually declining.
“While we may see a few bumps in the road as Brexit negotiations stumble along, the strength shown gives us real optimism that this upward trend will continue.
“We’re finally seeing brokers being more confident with the range of second charge products out there, and advise their clients accordingly.
“What’s important now is that brokers continue to grow this confidence, as fully understanding the role second charge mortgages can play for their clients, and the benefits they can have, will help to unlock further growth for the market.”
New second charge mortgage business has consistently increased by both value and volume, with annualised numbers of cases increasing by 9% from March to September, and equivalent loan sizes increasing by 3% to £47,000.
Even in the traditionally quiet month of August loans increased by a quarter in value and 11% in volume year-on-year, with £91m lent in the month.