Second charge mortgages up 11%

Second charge mortgages up 11%

The second charge mortgage market has reported an 11 per cent rise in sales volumes year on year in September.

Figures released by the Finance & Leasing Association (FLA) yesterday (November 8) found there were 1,958 new agreements signed in the month with a value of £89m, representing an 11 per cent rise on the same time last year.

In the three months leading up to September, there were 6,220 new agreements worth £279m of new business, up 7 and 5 per cent respectively on the year before.

Article continues after advert

In the year to September the value of new business reached £1.03bn as 22,555 new agreements were signed. This also marked an increase of 3 per cent on value and 5 per cent on volume.

Fiona Hoyle, head of consumer and mortgage Finance at FLA, said: "In September, the second charge mortgage market reported its strongest rate of new business volumes growth since January. 

"New business volumes have grown by 4 per cent so far in 2018, in line with expectations of single-digit growth in 2018 overall."

In the previous month, August, the market had grown 6 percentage points with 2,100 new agreements.

But despite a rise in volume, the value of new business in the second charge market dropped by 2 percentage points in August to £92m.