Second charge mortgages grow by a third within a year

Second charge loans went up 29 per cent by value to £556 million in the twelve months to November 2014, new FLA data reveals.

The month of November was a bit quieter for new business on the second charge mortgage market with loans growing just 7 per cent in value, while losing 8 per cent in volume from a year ago, the Finance & Leasing Association said.

In the three months to November new second charge mortgage business increased 19 per cent in value to £146 million.

Consumer finance as a whole saw a 3 per cent rise in November 2014, compared to the same month of 2013, and a 10 per cent jump in the year to November.

“The run-up to Christmas usually sees a strong performance by the retail store and online credit sector and 2014 was no exception.  New business in this sector reached £638 million in November, its best November performance for at least three years,” Geraldine Kilkelly, head of research and chief economist at the FLA, commented.