Brokers confident about second charge lending growth

53% of advisers at this week’s Financial Reporter Specialist Lending Roadshow said they expect lending volumes to continue to rise, and the remaining 45% expect volumes to remain steady.

When asked why they expect lending volumes to increase further, 49% said demand from consumers will continue to rise and 20% cited falling second charge rates. A further 20% believe that underwriting changes will mean more consumers will be eligible for second charge loans.

Compared to 12 months ago, two thirds of respondents believe that second charge loans are now a viable option for more consumers and 24% said there has been no change in demographics. Just 10% thought that second charge loans had become a less viable option for consumers.

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Financial Reporter editor, Rozi Jones, said: "Second charge lending has maintained a steady increase over 2019, with data from the FLA showing that the value and volume of lending rose by over 20% for the past four months. March saw the highest monthly growth seen since October 2008, and our respondents believe falling rates is helping to increase demand for this type of lending.

"It's encouraging to see that brokers are confident about lending volumes and the availability of second charge loans for their clients. As the sector continues to expand and innovate, our Roadshows will help advisers keep up to date with all of the latest market and product changes, enabling them to offer a more comprehensive and informed service to clients."