June saw the second charge mortgage market have its fourth consecutive month of growth, with new business up 33% by value and 22% by volume.
The number of new second charge mortgages in the first half of 2017 was 10,401, 11% higher than in the same period in 2016.
Fiona Hoyle, head of consumer and mortgage finance at the Finance & Leasing Association (FLA), said: “Second charge mortgages can be particularly useful when a customer wants to raise additional funds but does not want to change their existing first mortgage – especially where this involves additional costs. They are regularly used by customers to fund home improvements.”
Harry Landy, managing director at Enterprise Finance, added: “The second charge market has performed strongly recently, with four consecutive months of growth highlighting the sectors robustness. Consumers and investors have been hit by rising inflation, and this hasn’t been helped with the ongoing political and economic uncertainty following the General Election and current Brexit negotiations. However, this doesn’t seem to have deterred borrowers looking for alternative routes of financing.
“With the market continuing to accelerate, it’s hugely important that awareness and availability of second charge loans improves among brokers to help them secure the most suitable financing for their clients. Doing so will help the sector to continue to thrive.”