Second charge lending sees 'impressive' 18% January growth: FLA

Over 2018, second charge lending increased 5% by value to £1.08bn and 8% by volume with 23,829 new agreements.

Fiona Hoyle, head of consumer and mortgage finance at the FLA, said: “The second charge mortgage market made an impressive start to 2019, with new business up 12% by value and 18% by volume in January, compared with the same month in 2018.

“This is a strong performance, and as most of the market is broker-introduced, it also suggests that knowledge of second charge mortgages among brokers is growing.”

Geraldine Kilkelly, head of research and chief economist at the FLA, added: “The consumer finance market has seen new business growth slow in recent months, reflecting consumer concerns about the economic outlook.

“Our latest research suggests that UK new consumer credit is likely to grow by 3.0% in 2019 as a whole, down from 5.8% in 2018.”