Second charge lending volumes drop 1% year-on-year: FLA

The FLA data shows growth of 7% in total consumer finance new business in September on an annual basis. In Q3 2016, new business was also up by 7% compared with the same quarter in 2015.

Credit card and personal loan new business together grew by 8% compared with September 2015, while growth in retail store and online credit new business was flat.

Geraldine Kilkelly, Head of Research and Chief Economist at the FLA, said: “Consumer confidence has been relatively robust in recent months, which is reflected by the consumer finance market’s solid performance in the third quarter.

“New business growth of 10% in the first nine months of 2016 was slightly ahead of the FLA’s single-digit growth expectations for 2016 as a whole.”

Harry Landy, Sales Director of Enterprise Finance, commented: “It’s been a stormy year for the global economy and last month offered no respite. However, the second charge mortgage market has taken economic turbulence, including the post-Brexit uncertainty, in its stride and has continued its gradual rebound post-MCD.

"Indeed, today’s FLA data shows there is continued strength in the second charge market with new business volumes remaining akin to August’s increased level. We’re encouraged by the market’s sustained resilience and growing confidence in second charge lending as a mainstream part of the mortgage world. While the full effects of the Referendum result is yet to be seen, we are looking forward to growth in the months ahead and ending the year on a high.”