Second charge lending up 29%

The number of new second charge mortgages grew 1% in December and by 9% in 2014 as a whole.

According to recent projections from loan sourcing tool The Lending Wizard, the changes currently underway in the second charge loans industry will lead to the market more than doubling in size within three years.

Historic data shows that the secured loans industry has averaged 130% growth over the past three years, even before the recent changes to the market came into effect. However, a recent poll The Lending Wizard conducted at the Financial Services Expo demonstrated that 73% of intermediaries who responded have been feeling more confident about recommending secured loans since the FCA took over from the Office of Fair Trading, suggesting that this growth is likely to exceed previous trends in the months ahead.

Geraldine Kilkelly, FLA’s Head of Research and Chief Economist, said:

“Responsibly-provided credit has played an important role in helping consumers make essential household purchases over the last year. Our research suggests that consumer credit will continue to grow in 2015, by between 3-4%. Together with a recovery in household disposable incomes, this will help support economic growth in 2015.”