Steve Walker: Second charge volumes to rise next year
The Conservatives winning the General Election will provide one factor for second charge volumes to rise next year according to Steve Walker, managing director of Promise Specialist Lending.
He said that the country can move forward and confidence has returned so people will start transacting again.
Walker (pictured) said: “I do think the financial industries are in bit of a doldrum at the moment which has been contributed by the indecision around Brexit and what people’s futures look like.
“My experience, which goes back well over 30 years in this sector, is that when something big is happening, consumers stop enquiring about finance, whether it’s the World Cup, or something massive like Brexit.
“It delays people making decisions.
“So, I hope now in the New Year people will be able to see a way forward for themselves and start to be able to make decisions again.
“Second charges are linked very often to either something aspirational like home improvements or something more immediate like debt consolidation.
“I suspect that those aspirational borrowers have probably put plans on hold and now feel more confident to progress with any plans in the New Year.
“I do expect to see second charge volumes rise in the New Year partly because the indecision over Brexit would have gone away, and there would be a realisation that more people are in 5-year fixes and if they do want to borrow then a second charge is more likely to give them a suitable way of doing that.”