Second charge growth continues in April with 53% rise

The large annual rise has been attributed to the introduction of the FCA's MCOB regine in April 2016 which stunted business.

This is the second monthly rise in second charge lending following six consecutive months of decline since August 2016.

In March lending finally began to rebound with 8% growth by value and 15% by volume.

Fiona Hoyle, Head of Consumer and Mortgage Finance at the Finance & Leasing Association, said: “This is a strong performance compared with the same month last year, but it’s important to remember that some of the growth in new business in April will be attributable to the fact that second charge mortgage providers had a relatively quiet month in April 2016. They had just been transferred into the Financial Conduct Authority’s MCOB regime and were still bedding in their systems."

Harry Landy, Managing Director at Enterprise Finance, commented: “Today’s figures suggest some green shoots are coming through in the property market, continuing March’s trend. The UK’s property market is inherently resilient and it continues to be an attractive medium and long term investment. As the market accelerates it’s hugely important that awareness and availability of second charge loans improves among brokers to help them secure suitable financing for their clients."