Second charge business has increased by around a quarter year-on-year a new report just released shows.
From May to July 2017 there were 2800 second charges written worth £270m, an increase of 24% and 27% compared to the same three months last year. The latest figures show that more customers are taking out a second charge mortgage – for example to fund renovations or help family members with a deposit for their first home.
In July alone there were over 1900 deals worth £90m, a year-on-year increase of 24% and the upward trend is continuing. The £90m July total still represents a fall from £94m in June.
While the ongoing political and economic uncertainty may have had some effect, it’s important to remember the summer months are traditionally a quieter period for activity, so it will be interesting to see what happens in the winter.
The market is robust, demonstrated by four consecutive months of growth, so it looks like lending will continue upwards for the remainder of 2017.
In order for the sector to reach its true potential, it’s hugely important that awareness and availability of second charge loans improves among all concerned. This will help homeowners secure the most suitable financing for their needs in the longer term.
Interest rates remain low at present but its anybody’s guess how long this will be the case.
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