Second charge lending drops 22%: FLA
Second charge mortgage new business decreased 15% by value and 22% by volume in October compared to the same month last year, according to figures released by the Finance & Leasing Association.
"October was a quiet month for the second charge mortgage market as it continues to adapt to life under the Financial Conduct Authority’s mortgage regime."
Credit card and personal loan new business together grew by 7% compared with October 2015, while retail store and online credit new business fell by 4%.
Overall, October saw a 6% in consumer finance new business.
Geraldine Kilkelly, Head of Research and Chief Economist at the FLA, said: “October was a quiet month for the second charge mortgage market as it continues to adapt to life under the Financial Conduct Authority’s mortgage regime. In the ten months to October 2016, this market reported new business up 5% by value and down 6% by volume.
“The FLA’s latest commissioned research of consumer lending forecasts by Oxford Economics suggests that new consumer credit in the UK will continue to grow in 2017 by around 1%. This compares to a growth forecast of almost 6% in 2016 as a whole.”
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