The finance and leasing association has released data that shows the second charge market expanding on a yearly basis for the sixth month in a row.
In December 2018, there were 1,702 new agreements valued at a total of £80m, growth of 13% and 6% against December 2017, respectively.
This is some way off November’s data, however, when 2,319 new agreements valued at £99m provided a 21% rise for both metrics. In the 12 months leading to December 2018, 23,529 new agreements were recorded at £1.07bn in value. This is a 7% upward change in new agreements within that time frame, and a 4% increase in the value of new business.
December saw the market report its sixth consecutive month of growth, contributing to solid single-digit new business growth in 2018 as a whole. The second charge mortgage market is expected to see further single-digit new business growth in 2019 overall.
It is believed that the sector is more likely to grow at a measured pace rather than a “boom & bust” situation, backed by the increasing numbers of advisers who are now aware of where secured loans can sit in their advice process.
If you look closely at the positives a secured loan can offer a borrower, then it is easy to see why this form of lending is being welcomed by all.
The last 12 months has seen a substantial increase in the number of loan types available to a property owner. Not only this but new lenders have entered the market which has to be good for the long-term growth and stability of the second charge industry.
These days due to the vast choices open to the prospective borrower it is vital they get a professional adviser to point them in the right direction. With so many loans and re-mortgages available anybody contemplating taking out a loan would be very well advised to seek broker advice.
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