Second charge sector in good health

Commenting on the 2017 new business figures for the second charge mortgage market, Fiona Hoyle, Head of Consumer and Mortgage Finance at the Finance & Leasing Association (FLA), said: “Second charge mortgage new business volumes have now returned to levels last seen in 2015, before regulation transferred to the FCA’s mortgage regime. The sector has shown resilience during a period of significant regulatory change, as it works to ensure that all the new regulatory requirements are in place.

Consumers use second charge mortgages for a variety of purposes, particularly funding home improvements and property extensions.”

Tim Wheeldon, COO at Fluent Money, had this to say: “In her statement, Fiona Hoyle of the FLA described the second charge market as resilient which is absolutely right and certainly the sector has demonstrated that the new regulatory regime has been successfully absorbed into the industry’s DNA and new business figures have shown steady increases.

I think what needs to be remembered is that much of that new business is now coming from sources which are either new to second charge borrowing or have only ever used the facility sparingly in the past. Intermediaries are recognising in greater and greater numbers that, under this regulatory regime, they can be confident that a second charge option can be an appropriate choice for their customers.

As the message continues to spread, I expect more and more advisers will be actively researching a second charge option and the sector will continue to see steady growth.”