Second charge lending up 27% in February: FLA

Second charge mortgage new business volumes grew by 27% in February, according to the latest figures from the Finance & Leasing Association.

New agreements totalled 3,904, with the value of new business up by 37% to £214m.

On a quarterly basis, in the three months to February, lending was up 27% by number and 34% by value compared to the previous year.

Annually, second charge lending rose 18% by volume and 25% by value compared to the previous 12 months, with 43,142 agreements totalling more than £2.2bn.

Geraldine Kilkelly, director of research and chief economist at the FLA, said: “The second charge mortgage market reported robust new business growth in February, with new business by value reaching its highest February level since 2008.
 
“By providing a secured alternative to higher cost unsecured borrowing, second charge mortgages are proving popular with households as they help to manage affordability pressures while maintaining financial stability.
 
“The UK economy now faces a more challenging outlook, as the conflict in the Middle East is likely to weigh on activity, confidence and financial conditions. In this environment, the second charge mortgage market will continue to play an important role in supporting household budgeting, while affordability considerations and wider uncertainty shape the pace of growth in the months ahead.”